Property Flipping Hits Lowest Level in a Decade

The number of investors flipping properties to make a profit has hit the lowest level in more than a decade.

Land Registry data analysis reveals the proportion of homes bought and sold within 12 months has dropped from 3.6% to 2.3% of the housing market, marking the lowest level since 2013.

Estate agency Hamptons analysed the figures and found that 7,301 homes were flipped in the first three months of this year (2025)—down from a 10-year quarterly average of 10,000 homes renovated and sold.

The figures show property developers are struggling to generate a profit. The average gross profit on flipped homes is £22,000, which is a healthy £6,000 increase compared to the same period in 2024, but £16,000 less than gains made in 2022.

Profits are expected to fall further following Chancellor Rachel Reeve’s October Budget, which increased the Stamp Duty Land Tax (SDLT) surcharge for investors from 3% to 5%, and the reduction of the SDLT threshold in April.

Profits plunge

Buyers in England pay SDLT, while those with properties in Wales pay Land Transaction Tax (LTT) at similar rates.

As a result, homebuyers now start paying higher stamp duty from a lower threshold.

Hamptons explained that profits from flipping have dropped from 17% in Q1 2015 to 10% in Q1 2025. Rising stamp duty and falling house prices are blamed for most of the decline in gains.

Commenting on the SDLT changes, Aneisha Beveridge of Hamptons said: "Stamp duty is becoming costly and is eating into investor profits. In 2015, investors paid the same SDLT on a property as someone buying a home to live in. This meant that the average SDLT bill in the first quarter of 2015 was £1,900. But since then, there have been many stamp duty changes, most notably the introduction of Higher Rates for Additional Dwellings.

"The average SDLT payable on a flipped home in the first three months of this year has increased significantly—by 236% compared to Q1 2015. Or to put it another way, an investor who sold in Q1 2025 saw an average 21% of their gross profit go towards paying stamp duty."

She added that profit margins for flippers are becoming thinner. Q1 2025 profits of £12,000 represent a 7% return on the purchase price. In Q1 2015, profits were £28,500, or 16% of the property value.

In Q1 2025, 80% of flipped properties sold for more than their purchase price, but a deeper look at the figures reveals only 66%—two in three—made a profit after accounting for stamp duty, building costs and falling house prices.

And the best place to flip? Hamptons says the cheapest homes are in the North-East, notably in Cleveland and Redcar.