The number of homes bought, refurbished and resold within a year has dropped to its lowest level in a decade as higher stamp duty costs continue to erode investor returns.
Data from Hamptons, using Land Registry figures, shows just 10,570 homes were flipped across England and Wales in 2025 – down from 21,520 in 2016.
As a result, flipping now accounts for only 1.5% of all transactions, the lowest share in the past 10 years and a sharp fall from 2.4% in 2016.
The decline has been closely linked to the introduction of the second-home stamp duty surcharge in 2016, which has since risen to 5%, significantly increasing upfront costs for investors.
PROFITABILITY HIT
Average post-stamp duty gains have fallen by more than half over the past decade, dropping from £36,500 in 2015 to £16,390 in 2025 – a 55% decline. Stamp duty alone now accounts for 43% of gross profit, equivalent to £12,400 per transaction.
While 73.3% of flipped homes still achieved a gross profit in 2025, this drops to 58.7% once stamp duty is included, highlighting how tax costs are increasingly determining viability.
The slowdown has been most acute in southern markets, where higher purchase prices and weaker recent house price growth have squeezed margins. In the South West, post-tax profits have fallen by more than 80% since 2015, with stamp duty absorbing as much as 71% of gross profit.
LOW-VALUE MARKETS
By contrast, activity has become more concentrated in lower-value regional markets. The North East has emerged as the strongest-performing region, and the only part of England where profits after stamp duty have increased over the past decade.
Lower entry prices mean reduced tax exposure, with average stamp duty bills of around £6,000 per flip in the region, compared to roughly £30,000 in London. As a result, the North East recorded the highest concentration of flipping activity, accounting for 3% of all transactions in 2025.
At a local level, Hartlepool stands out as the UK’s flipping hotspot, with 7.4% of homes resold within 12 months.
The data also highlights a widening divide by price point. Properties bought for under £100,000 were the most likely to turn a profit, with 86% doing so, while just 28% of homes purchased for more than £350,000 generated a return.
UNINTENDED CONSEQUENCES
Aneisha Beveridge (main picture, inset), Head of Research at Hamptons, says: “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.
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.”
DIFFICULT TO TURN PROFIT
And she adds: “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.”
