House flipping plummets to lowest in a decade after stamp duty change – UK Times

The practice of ‘flipping’ homes – buying and reselling properties within 12 months – has plummeted to its lowest level in over a decade across England and Wales, new analysis reveals.

Property firm Hamptons, using Land Registry data, found the number of homes being flipped halved from 21,520 in 2016 to 10,570 in 2025.

This now accounts for just 1.5% of housing transactions in 2025, down from 2.0% in 2024, marking the lowest proportion in over 10 years. The number of flipped properties is the lowest since 2012, with the proportion being the least since 2013.

The property firm said a “long slowdown” was recorded following the introduction of the second home stamp duty surcharge in 2016.

Hamptons said that last year around seven in 10 (73.3%) flipped homes generated a gross profit.

It said a decline in flipping profitability has varied sharply by region, with the steepest falls concentrated in the South of England, where weaker house price growth and higher stamp duty costs have dented returns.

The North East of England, where house prices are lower, remains a “flipping hotspot” with locations such as Hartlepool, County Durham, Middlesbrough, Sunderland and Stockton-on-Tees being popular, the research found.

Stamp duty applies in England, and in Wales the land transaction tax applies.

Aneisha Beveridge, head of research at Hamptons, said: “Flipping is no longer the profitable venture it once was.

“There was a time when rundown properties could be bought cheaply, refurbished and resold at a healthy margin.”

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She said that stamp duty “is only part of the challenge”, adding: “Falling house prices across many southern markets have squeezed returns further while the cost of materials and labour have risen sharply since the pandemic.

“Even before factoring in stamp duty, refurbishment budgets now stretch much further than they once did, pushing profit margins to their thinnest levels in over a decade.

“In contrast, the North – particularly the North East – has remained far more resilient.

“Lower entry prices keep stamp duty bills modest, meaning more scope to add value through refurbishment. Combined with strong local house price growth, this has created a rare pocket of the country where flipping can still deliver healthy returns.

“Unless a flip is supported by strong underlying house price growth, turning a profit is becoming increasingly difficult. That said, investing in relatively cheaper property in an area where house price growth is strong can still yield solid returns.”