The share of homes bought and resold within 12 months – often referred to as “flipping” – has fallen to its lowest level in more than a decade, as low margins reduce the appeal of short-term property investment. These properties are usually purchased to be renovated and sold immediately for a profit.
Land Registry data shows that in 2025, only 1.5% of all transactions in England and Wales were flipped, down from 2.% in 2024.
This represents a continuation of the long downturn that began shortly after the introduction of the second Home Stamp Duty (SDLT) surcharge in 2016, during which the number of flipped homes has halved, from 21,520 in 2016 to just 10,570 in 2025. Initially set at 3%, the surcharge was later increased to 5% in 2024, further reducing the returns once flipped properties generate.
In 2015, just a year before the Second Home Surcharge was introduced, the average post-SDLT gross profit on a flipped home was £36,500. Post‑SDLT gross profit is defined as the difference between the resale price and the original purchase price after deducting the advance stamp duty paid. By 2025, this has fallen to £16,390, representing a decline of 55.1%. These calculations do not include typical renovation costs, which suggests that only a small number of flipped properties ultimately provide a net profit.
By 2025, 73.3% of flipped homes made a gross profit. However, once SDLT is accounted for, the figure falls to 58.7%, down from a high of 85.9% in 2006.
As a result, in 2025, the SDLT charge was 43% of gross profit (the difference between the sale and purchase price), equating to £12,400 on the average flip. Profits increased briefly during the pandemic due to the SDLT holiday, but have since declined.
returns to the regions
The decline in flipping profitability since 2015 has varied sharply by region, with the sharpest decline concentrated in the south of England, where weak house price growth and higher stamp duty costs have hit returns.
Change in gross profit after SDLT cost by sector
|
Year |
2015 |
2024 |
2025 |
since 2015 |
year after year |
|
London |
£100,570 |
£65,950 |
£35,720 |
-64.5% |
-45.8% |
|
south east |
£45,780 |
£15,900 |
£9,900 |
-78.4% |
-37.7% |
|
south west |
£33,270 |
£19,180 |
£6,560 |
-80.3% |
-65.8% |
|
East of England |
£44,870 |
£17,840 |
£16,600 |
-63.0% |
-6.9% |
|
East Midlands |
£23,580 |
£14,430 |
£12,080 |
-48.8% |
-16.2% |
|
West Midlands |
£22,640 |
£20,590 |
£12,440 |
-45.0% |
-39.6% |
|
North east |
£13,450 |
£16,240 |
£17,080 |
27.0% |
5.1% |
|
north west |
£23,740 |
£26,490 |
£23,280 |
-1.9% |
-12.1% |
|
Yorkshire and Humber |
£18,930 |
£14,970 |
£13,260 |
-30.0% |
-11.4% |
|
England and Wales |
£36,500 |
£21,940 |
£16,390 |
-55.1% |
-25.3% |
Source: Hampton and Land Registry
The South West has seen the sharpest decline, with average post-SDLT profits down 80.3% since 2015. By 2025, stamp duty absorbed 71% of average gross profits in the sector, leaving limited scope for investors to generate meaningful returns after tax.
In contrast, the North East was the strongest performing region in percentage terms, delivering an average return of 36.4% in 2025 (based on resale profits relative to purchase price). It is the only region of England where profits after SDLT have increased by 27.0% since 2015.
Low house prices in the North East have kept stamp duty bills modest – averaging around £6,000 per flipped property in 2025 – meaning SDLT is only 26.0% of the average gross profit, compared to 45.6% and £30,000 in London.
In fact, 17% of flipped homes in the area were purchased for £40,000 or less and therefore owed no stamp duty. This, combined with relatively strong house price growth in recent years, has helped maintain investor activity. As a result, the North East has become England’s flipping hotspot, with 3.0% of all homes sold in 2025 having been resold within 12 months.
Many local authorities in the region have seen profits more than double since 2015. Hartlepool records the highest share of flipped homes nationally at 7.4% of all transactions, while Brentwood in the east of England accounts for just 0.5%.
Change in average gross profit after SDLT by North East Local Authorities since 2015
|
Area |
local authority |
Homes flipped as part of all transactions |
Change in profits since 2015 |
Average price of a flip in 2025 |
|
North east |
hartlepool |
7.4% |
148.8% |
£60,520 |
|
North east |
County Durham |
5.2% |
81.6% |
£73,260 |
|
North east |
middlesbrough |
4.2% |
70.1% |
£81,090 |
|
North east |
Sunderland |
3.9% |
79.9% |
£139,870 |
|
North east |
Stockton-on-Tees |
3.4% |
94.6% |
£128,410 |
|
North east |
Redcar and Cleveland |
3.3% |
141.7% |
£109,630 |
|
North east |
gateshead |
2.9% |
-11.8% |
£124,580 |
|
North east |
Northumberland |
2.7% |
10.3% |
£156,930 |
|
North east |
South Tyneside |
2.2% |
111.1% |
£137,330 |
|
North east |
North Tyneside |
2.0% |
-46.9% |
£235,480 |
Source: Hampton and Land Registry
What separates a profitable flipped property from an unprofitable one?
Properties priced under £100,000 were most likely to make a profit in 2025, with 86% doing so. This fell sharply to just 28% of properties bought for more than £350,000. This mainly reflects strong house price growth in northern areas where lower-priced properties are concentrated.
Returns follow a similar pattern. Investors in the sub-£100,000 bracket achieved an average gain of 45.8%, while returns on purchases above £350,000 turned negative. Overall, 88.8% of all properties flipped were purchased for less than £350k.
Share of properties earning gross profit after SDLT according to initial purchase price band (England)
|
Purchase Price: |
£0-£100,000 |
£100,001-£200,000 |
£200,001- £350,000 |
£350,001+ |
|
made a profit |
86% |
68% |
37% |
28% |
|
average return |
45.8% |
19.4% |
4.7% |
-4.5% |
Source: Hampton and Land Registry
Anisha Beveridge, head of research at Hampton, said: “Flipping is no longer the profitable venture it used to be. There was a time when dilapidated properties could be bought cheaply, renovated and resold at good margins. However, today, second home stamp duty accounts for almost half of all gross profits, significantly reducing returns.
“The surcharge was not primarily intended to penalize ‘house flipping’; its primary purpose was to support first-time buyers. Although it has been largely successful in that goal, it has made flipping impractical in much of the south of England. These projects provide much-needed move-in-ready homes, freeing up buyers from the financial risk and expertise to carry out major tasks themselves.
“But stamp duty is only part of the challenge. Falling house prices in many southern markets have further reduced returns, while material and labor costs have risen sharply since the pandemic. Even before factoring in stamp duty, renovation budgets are now much larger than they once were, pushing profit margins to their lowest level in more than a decade.
“In contrast, the North – particularly the North East – remains far more resilient. Low entry prices keep stamp duty bills modest, meaning more scope to add value through renovation. Combined with strong local house price growth, this has created a rare part of the country where flipping can still deliver healthy returns.
“Unless a change is supported by strong underlying house price growth, it is becoming increasingly difficult to make a profit. In an area where house price growth is strong, investing in relatively cheap property can still deliver solid returns,” he said.