The share of homes bought and resold within 12 months - commonly referred to as ‘flipping’ - fell 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. 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.
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.
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.
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. Where Post‑SDLT 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.
The South West has seen the sharpest fall, with average post‑SDLT profits down 80.3% since 2015. By 2025, stamp duty absorbed 71% of the average gross profit in the region, leaving limited scope for investors to generate meaningful returns after tax. 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.
By contrast, the North East was the strongest-performing region in percentage terms, delivering average returns of 36.4% in 2025. It is also the only region in England where profits after SDLT have risen since 2015, up 27.0%. Lower house prices in the North East have kept stamp duty bills modest – averaging around £6,000 per flipped property in 2025 – meaning SDLT accounts for just 26.0% of the average gross profit, compared to 45.6% and £30,000 in London. Combined with strong local house price growth, this has created a rare pocket of the country where flipping can still deliver healthy returns.
In fact, 17% of flipped homes in the region were purchased for £40,000 or less, and therefore incurred no stamp duty liability at all. 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.
Several local authorities in the region have seen flipping profits more than double since 2015. Hartlepool stands out, recording the highest share of flipped homes nationally, at 7.4% of all transactions, compared with just 0.5% in Brentwood in the East of England.
What sets a profitable flipped property apart from a non-profitable one?
Cheaper properties present greater scope for value-added work, so typically end up being the properties which have the greatest return on investment.
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. That said, 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. In total, 88.8% of all flipped properties were bought for less than £350k.
Looking ahead, the number of flipped homes coming onto the market is likely to continue its gradual decline, as profits are increasingly constrained by the stamp duty land tax surcharge. Without strong underlying house price growth, achieving a viable return has become increasingly difficult.
That said, opportunities still exist. Investing in relatively lower‑priced properties in areas experiencing robust price growth can continue to deliver solid returns. More experienced flippers may also be better placed to navigate these pressures through market knowledge, while live‑in flippers prepared to occupy a property during renovation can avoid the second‑home surcharge altogether. While property flipping has become less attractive, it remains feasible under the right market conditions and careful strategies.
