Once fuelled by renovation TV shows like Homes under the Hammer and HouseTok, the flipping hype is slowing down.
New figures from property consultancy Hamptons show property flipping is at its lowest level in over a decade, with rising renovation costs, higher interest rates, and the reversal of temporary stamp duty cuts all contributing.
The average stamp duty bill for flipped properties has now surged to £11,920, putting a major dent in potential profits.
So what does this mean for would-be flippers? Is it time to abandon ship, or simply rethink the strategy?
Caroline Marshall-Roberts, founder of BuyAssociation, says: “It’s still viable, but it’s definitely become more specialised. Previously, those with little experience in property investment could buy fixer-uppers and turn a decent profit with relatively minimal risk.
“Now, rising costs such as stamp duty are eating into those profits. When the average gross return from flipping is around £22,000, and stamp duty alone can swallow more than half of that, you have to be very strategic.
“The era of ‘buy cheap, do up, sell high’ is much harder to come by. Labour and material costs can quickly erode margins, and even eliminate them entirely if you’re not careful.
“That said, flipping can still work. But it takes patience, and more importantly, real expertise. In the current market, many investors are seeing stronger, more stable returns from long-term buy-and-hold strategies. Rental demand is high in key regions, and steady capital growth can offer better value than a risky flip.”
Marshall-Roberts says that with stamp duty is a non-negotiable factor, investors need to run the numbers before they even view a property.
“If your flip goes over the £125,000 mark – and most do – you’re facing a substantial upfront tax, plus a 5% surcharge for second homes and investment properties. What’s more, it’s payable within 14 days of completion, so cash flow is critical.
“For new investors, the smart move is targeting lower-value properties in high-growth areas. This keeps your stamp duty bill down while still offering room for capital appreciation. That’s why the North and Midlands are particularly attractive, with lower entry points combined with strong growth potential.”
“Look for properties with potential, but stay grounded. Focus on homes that need cosmetic updates rather than structural overhauls. Favour areas with strong rental demand and good transport links. These offer the best balance of affordability and resale value. Auctions are worth exploring too. You can often snap up below-market deals, perfect for flipping if you have the funds ready.
“As for location, Manchester, Liverpool, and Birmingham stand out. These northern cities offer affordable starting points and strong long-term prospects.
“Another approach worth considering is buying off-plan. Some investors purchase early in a development, then resell on completion at a profit. This lower-effort form of flipping avoids renovation costs entirely.”
Her advice is to do extensive research and seek expert advice. Too many people get swept up by TikTok renovations and try to replicate them blindly.
“That person might have a totally different budget or end goal. Or worse, lead you down the wrong path entirely, risking serious losses. Focus on the postcode, understand your target buyer, and calculate every cost, including a 10-15% contingency. And vet your trades people thoroughly. Reliable professionals who deliver on time and within budget can make or break your flip.
“Flipping isn’t the easy win it once was. But with the right mindset, it can still pay off.”
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