The number of homes being “flipped” within a year has fallen to its lowest level in more than a decade, as higher taxes and subdued house price growth dampen investor appetite.
Analysis by Hamptons shows that just 10,570 homes in England and Wales were bought and resold within 12 months in 2025—down sharply from 21,520 in 2016.
Flipping now accounts for only 1.5 per cent of all housing transactions, compared with 2.0 per cent a year earlier, marking the lowest proportion since 2013. The total number of flipped homes is also the smallest since 2012.
The decline follows what Hamptons describes as a “long slowdown” triggered by the introduction of the second-home stamp duty surcharge in 2016, which significantly increased the cost of short-term property investment.
While flipping was once a reliably profitable strategy—around 73 per cent of such transactions generated a gross profit in 2015—returns have become increasingly uneven, particularly in southern England.
Slower house price growth, combined with higher stamp duty bills, has eroded margins across London and the South East, making it harder for investors to turn quick profits.
By contrast, parts of the North East continue to attract speculative buyers, with towns such as Hartlepool, Middlesbrough and Sunderland emerging as relative hotspots due to lower entry prices and stronger potential yields.
The figures highlight the growing regional divide in Britain’s housing market, as well as the impact of tax policy in reshaping investor behaviour.
With borrowing costs still elevated and price growth muted, analysts say the era of easy gains from rapid property resale may be coming to an end, particularly in higher-value markets.
Aneisha Beveridge, head of research at Hamptons, said: “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.”
She said that stamp duty “is only part of the challenge”, adding: “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.”
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