Number of homes ‘flipped’ has fallen

Michael Lloyd

July 29, 2019

hmrc property transactions

The number of homes sold more than once within a 12-month period, known as ‘flipping’, has fallen dramatically since its peak in 2004, Hamptons International has found.

Last year 18,630 homes were flipped in England & Wales, 69% less than the 60,340 homes flipped in 2004.

However, between 2017 and 2018 the number of flipped homes increased 1.6%.

Aneisha Beveridge, head of research at Hamptons International, said: “The art of flipping generally involves buying, renovating and selling a home, in most cases for a profit.

“Flippers play an important role in the housing market by improving existing housing stock and bringing empty homes back into use.

“Yet the number of flipped homes has fallen considerably since its heyday in the early 2000s.

“Flippers tend to operate when house prices are rising, to really maximise their profits.

“Between 2000 and 2007 house prices were rising at an average annual rate of 13%, so there were plenty of opportunities for flippers to make profits.

“But following the financial crash price growth has slowed, and this combined with tax changes has meant that generally it’s harder for flippers to make as much of a return as before.”

The average flipper sold their property for £30,150 more than they paid for it prior to tax, which equates to a 22% average gain in England and Wales.

However, this is less than the 32% average gain made in 2004.

London saw the biggest drop in the number of homes flipped since 2004 (-81%), followed by the North West (-73%).

The North East is still the region with the highest proportion of flipped homes, with 3.6% of homes sold more than once in 2018.

However, between 2017 and 2018 every region other than London recorded a small increase in the percentage of homes flipped.

Sign up to our daily email