The number of homes being bought, renovated and then sold in quick time has slumped over the last decade – but there is still money to be made if you know where to buy.
Buying low and selling at a profit is known as house ‘flipping’. The amount of properties ‘flipped’ within 12 months halved between 2016 and 2025 from 21,520 to just 10,570, according to Hamptons.
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The flipping hotspots where investors can still turn a profit
When it comes to flipping, only one UK region has bucked the downward trend over the last 10 years, according to Hamptons’ analysis – the North East.
The research shows that gross profits on flipped homes there, after deducting stamp duty costs, were up between 2015 and 2025 by 27%, from £13,450 to £17,080.
Across the region, the rise in profits was sharpest in Hartlepool, increasing by 148% between 2015 and 2025.
Post-stamp duty land tax (SDLT) profits also surged by 141% in Redcar and Cleveland, 111% in South Tyneside and 70% in Middlesbrough.
Dr Andrew Threadgold, general manager of property development firm Cornerplot Properties, based in North East England, echoed Hamptons’ findings, highlighting Middlesbrough as one area which has been a flipping hotspot for a number of years. He also said South Wales had proved profitable, in particular areas such as the Valleys and Pembrokeshire where he said house prices have surged.
|
Region |
Local Authority |
Flipped homes as a share of all transactions |
Change in gross profits after Stamp Duty since 2015 |
Average price of a flip in 2025 |
|
North East |
Hartlepool |
7.40% |
148.80% |
£60,520 |
|
North East |
County Durham |
5.20% |
81.60% |
£73,260 |
|
North East |
Middlesbrough |
4.20% |
70.10% |
£81,090 |
|
North East |
Sunderland |
3.90% |
79.90% |
£139,870 |
|
North East |
Stockton-on-Tees |
3.40% |
94.60% |
£128,410 |
|
North East |
Redcar & Cleveland |
3.30% |
141.70% |
£109,630 |
|
North East |
Northumberland |
2.70% |
10.30% |
£156,930 |
|
North East |
South Tyneside |
2.20% |
111.10% |
£137,330 |
Credit: Hamptons and Land Registry
Why are fewer properties being flipped?
Flipping homes involves buying a property and selling it on quickly for a profit.
Typically, investors buy run-down properties then renovate them before selling up. Some investors simply buy homes at a low price then sell them immediately for profit.
Flipping was once seen as a risk worth taking. Hamptons saw the trend peak in 2007, when 3.7% of all homes sold in England and Wales (52,950 properties) had been purchased in the last 12 months.
But the introduction of the 3% stamp duty surcharge on second homes in 2016 and the increase in this surcharge to 5% in October 2024 has eaten into profits.
According to Hamptons’ research, gross profits – the difference between the original price and resale price of a home, after deducting stamp duty – have fallen significantly since 2016.
In 2015, just one year before the second home surcharge was introduced by then chancellor George Osborne, the average post-SDLT gross profit on a flipped property was £36,500. By 2025, this had fallen to £16,390.
This is before refurbishment costs are factored in, suggesting that only a minority of flipped properties are now delivering a net profit, Hamptons said.
Aneisha Beveridge, head of research at Hamptons, said “flipping is no longer the profitable venture it once was” due to the introduction of the second home stamp duty surcharge.
She added that falling house prices across southern England and the rising cost of materials and labour since the pandemic had further dented investors’ profits.
“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,” Beveridge explained.
‘Perfect storm’ for developers flipping homes
Threadgold said he was still managing to flip homes in the North East, Warwickshire and South Wales, but the market was under significant pressure.
He said the introduction of the stamp duty surcharge, as well as a host of other factors had created the “perfect storm” for developers looking to flip properties.
Threadgold said it has been harder to get hold of skilled workers due to extra red tape post-Brexit while the rise in the National Minimum Wage has added to labour costs.
In particular, he highlighted significant rises in material costs, on items such as timber and plaster, during and since the coronavirus pandemic which have put major pressure on developers.
“Every little thing that goes into building or renovating a property has risen dramatically in the last four or five years. It’s off the scale how much stuff has gone up in price,” he said.
He added that an increase in solicitor fees, as well as higher interest rates on bridging loans, used by many developers, was contributing to surging costs.
What is the impact on the housing market?
Kate Faulkner, property market expert, said because the proportion of housing transactions made up of flipped homes was so small in 2016 (2.4%), any falls since then wouldn’t have a major impact on the broader housing market.
In fact, she said it left more space for homebuyers to renovate properties themselves rather than buying from developers who would commission the work then add a premium on top.
However, she said less developers flipping homes could make it harder for sellers to shift homes with a smaller pool of buyers in the market.
How else can you make a profit on property?
If flipping isn’t for you, there are other options if you’re still keen on turning a buck in the property market. According to experts, there are two main options available.
Buy-to-let
Buy-to-let landlords may be facing a higher tax burden and mortgage rates, but there is still scope to turn a profit, said Sam Hadfield, managing director at property investment company BuyAssociation.
He pointed to rising rents as one reason why landlords can still make money across the sector. Average UK monthly private rents increased by 3.4% to £1,377 in the 12 months to March 2026, according to the latest figures from the Office for National Statistics (ONS).
“There is probably a bit of a cultural shift that’s been happening over the last 10 years in the UK, where I believe that our younger working population are very happy to rent,” Hadfield said.
Hadfield said there was strong potential for BTL landlords buying property in regional spots such as Birmingham and Manchester, where populations are growing and people are “very happy” to rent.
He explained: “If you can develop that house, it’s probably still sensible to do that and add some value to it, but I would say flipping it at the end is not the strategy. It would be to tenant it and hold it, [and] build your portfolio.”
Speak to your local council
Another option is to explore whether you can lease your property to the local council, said Faulkner.
This can lead to fewer void periods while providing social housing for those that need it within your community. Some councils take on the role of letting agent, carrying out day-to-day communication with the tenant which means less work for you.
Do note though, leasing a property to your council may mean you have less of a say over rent levels or choosing which tenants to move.
Waltham Forest Council, in North-East London, for example, offers private landlords leasing their properties up to £10,000 in cash incentives and covers the cost of annual insurance against rent loss and tenant damage.
