The number of homes bought, refurbished and resold within 12 months has dropped to its lowest level in a decade, as shrinking margins make projects increasingly difficult to justify, according to the latest research from Hamptons.

Just 10,570 properties were flipped in 2025, down from 21,520 in 2016, with activity now accounting for 1.5% of all transactions across England and Wales.

Higher Stamp Duty on second homes has played a central role, with the surcharge rising from 3% to 5% in 2024. The tax now absorbs 43% of gross profit, equivalent to £12,400 per transaction.

No profit

Average gross profit after Stamp Duty has fallen from £36,500 in 2015 to £16,390 in 2025, a drop of more than half. Once refurbishment costs are included, only a minority of projects are likely to deliver a net profit.

Aneisha Beveridge (pictured), Head of Research at Hamptons, 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.”

While 73.3% of flipped homes still sell for more than their purchase price, this falls to 58.7% once Stamp Duty is taken into account.

The cost of materials and labour have risen sharply since the pandemic.”

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.”

She says the North East remains a rare exception, where lower entry prices and stronger growth continue to support returns.