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2mo ago

UK House Flipping Hits 12-Year Low as Returns Shrink

Stamp duty surcharges coupled with rising renovation costs have driven investors to shift into more affordable markets in northern England, the Midlands, Wales

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Property flipping has become increasingly tricky in many parts of England (Photo: Anthony Devlin/PA Wire)
Properties bought and sold within a year made up 2.3 per cent of sales between January and March

Overview

  • Flipping activity fell to 2.3% of UK home sales in Q1 2025, matching the lowest rate since Q1 2013 and down from 3.6% a year earlier.
  • Average gross profits on flipped homes dropped to £22,000 in early 2025, nearly half the £38,000 peak recorded in 2022 before taxes and fees.
  • Eighty percent of flipped transactions still yielded a gross profit, but net returns have been eroded by higher stamp duty and transaction taxes.
  • Northern England, the Midlands and Wales accounted for 61% of all flips in Q1 2025, up from 50% a decade ago as investors seek better yields.
  • Redcar and Cleveland led local authority hotspots with 7.6% of sales flipped, followed by County Durham at 6.6%, while London saw just 1.5%.