The share of homes bought and resold within 12 months – commonly referred to as ‘flipping’ – has plummeted to its lowest level in more than a decade.
These properties are typically bought with the intention of being renovated and sold on at a profit.
But HM Land Registry data shows that in 2025, just 1.5% of all transactions across England & Wales were flipped, down from 2.0% in 2024.
This marks the continuation of a long slowdown 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 raised to 5% in 2024, further eroding the returns that flipped properties once generated.
Lettings agency Hamptons, in a detailed analysis of how flipping has effectively died out, says that in 2015, just one year before the second home surcharge was introduced, the average post-SDLT gross profit on a flipped home stood at £36,500.
This gross profit is defined as the difference between the resale price and the original purchase price, after deducting the upfront stamp duty paid.
By 2025, this had fallen to £16,390, representing a 55.1% decline. These calculations do not include typical refurbishment costs, suggesting that only a minority of flipped properties ultimately deliver a net profit.
As of 2025, 73.3% of flipped homes generated a gross profit. However, once SDLT is accounted for, this figure falls to 58.7%, down from a peak of 85.9% in 2006.
Consequently, in 2025, SDLT charges accounted for 43% of gross profit (the difference between the sale and purchase prices), equivalent to £12,400 on the average flip. Profits briefly picked up during the pandemic due to the SDLT holiday but have since declined.
Returns across the regions
The decline in flipping profitability since 2015 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.
Change in gross profit after SDLT costs by region
| Year | 2015 | 2024 | 2025 | Since 2015 | YoY |
| 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 & Humber | £18,930 | £14,970 | £13,260 | -30.0% | -11.4% |
| England & Wales | £36,500 | £21,940 | £16,390 | -55.1% | -25.3% |
Source: Hamptons & Land Registry
What sets a profitable flipped property apart from a non-profitable one?
Properties priced below £100,000 were the most likely to turn a profit in 2025, with 86% doing so. This fell sharply to just 28% of properties bought for more than £350,000.
This predominantly reflects stronger house price growth across Northern regions where lower‑priced properties are concentrated.
Returns follow a similar pattern. Investors in the sub-£100,000 bracket achieved average gains of 45.8%, while returns turned negative for purchases above £350,000 (table 3). In total, 88.8% of all flipped properties were bought for less than £350k.
The share of properties which made a gross profit after SDLT on a flip by 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: Hamptons & Land Registry
Aneisha Beveridge, Head of Research at Hamptons, says: “There was a time when rundown properties could be bought cheaply, refurbished, and resold at a healthy margin. Today, however, second home stamp duty absorbs nearly half of all gross profits, significantly eroding returns.
“The surcharge was not primarily intended to penalise ‘house flipping’; its primary aim was to support first‑time buyers. While it has largely succeeded in that goal, it has left flipping unviable across much of the South of England.
“These projects deliver much-needed move-in-ready homes, sparing buyers the financial risks and expertise to undertake major works themselves.
“But stamp duty is only part of the challenge. 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.”
This article is taken from Landlord Today