The number of properties bought and resold within 12 months has halved over the past decade as home “flipping” has become less profitable, new research has found.
Estate agency Hamptons says that 10,570 properties were flipped in 2025, compared to 21,520 in 2016.
It says the stamp duty surcharge on second homes triggered the slowdown as average profits after tax for those renovating and reselling homes have more than halved.
Higher-rate stamp duty charges now account for 43% of gross profit, equivalent to an average of £12,400 per transaction, Hamptons found.
Initially set at 3%, the stamp duty surcharge on second homes was later raised to 5% in 2024.
While 73.3% of flipped properties still made a gross profit, which means they achieved a higher sale price than the purchase price.
However, this does not factor in renovation costs.
In 2025, once stamp duty was factored in, this fell to 58.7%, down from a peak of 85.9% in 2006.
In 2015, just one year before the second home surcharge was introduced, the average gross profit after stamp duty on a flipped home stood at £36,500.
By 2025, this had fallen to £16,390, representing a 55.1% decline.
But as the calculations do not include typical refurbishment costs, Hamptons believes that only a minority of flipped properties ultimately deliver a net profit.
Hamptons head of research Aneisha Beveridge 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.”
But she says that stamp duty is only part of the challenge.
Beveridge adds: “Falling house prices across many Southern markets have squeezed returns further, while the cost of materials and labour have risen sharply since the pandemic.”
“By contrast, in the North, and particularly the North East, it 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.”
