A new report from Hamptons casts doubt on the viability of flipping properties, despite recent investor interest. In Q1 2025, only 2.3% of all property sales were flips — the lowest level since 2013, and well below the 10-year average.

Key Figures:

• Flipped sales down 27% vs the 10-year quarterly average

• Average gross profit: £22,000 (down from £38,000 peak in 2022)

• Average net profit after SDLT: £12,000

• Stamp duty now absorbs 30% of average gross profit, up from 9% in 2015

The Stamp Duty Squeeze

• Stamp Duty bills on flipped homes have increased 236% since 2015

• Average SDLT bill for Q1 2025: £11,920

• Many investors now face SDLT bills larger than their refurb costs

• Only 66% of flipped homes turn a profit after stamp duty, down from 80%

• Based on current rates, just 59% would be profitable post-SDLT — the lowest since 2009

Regional Divide: The North Leads

• Flipping now thrives only in the Midlands, North, and Wales (61% of flips)

• North East is the UK’s flipping hotspot:

  • 4.7% of sales = flips (more than double national avg)

  • Redcar & Cleveland leads the league table

  • 11% of flips bought under £40k (no SDLT), compared to just 2% nationally

  • 87% of sub-£40k flips turned a profit

outhern Slide

• Flipping is declining rapidly in London and the South:

  • London flips just 1.5% of sales, down from 3.2% in 2015

  • Stamp duty eats 23% of gross profit in the capital

  • Only two southern councils (Great Yarmouth & Torridge) appear in the flipping top 20

🗣️ Hamptons’ Verdict

“Stamp duty bills now account for nearly a third of gross profits… This, alongside rising renovation costs and weak price growth, makes flipping increasingly unviable.”
— Aneisha Beveridge, Head of Research

She adds that the second home SDLT surcharge, intended to benefit first-time buyers, is now undermining refurbishment-based investment — especially for older or vacant homes needing work.

🧾 Takeaway for Landlords & Investors

• Flipping only stacks up in low-cost areas, where SDLT is minimal

• In high-value markets, stamp duty is crushing returns

• Investors considering flipping should closely model costs and yields, and reconsider strategy in the South