A flipping good way to make a quick profit! Number of homes being bought and sold for a quick turnaround is at the highest level for 12 years
- The proportion of homes being flipped is now at its highest level since 2008
- Estate agency Hamptons International said that the average profit is £40,995
- Burnley in Lancashire was named the flipping capital of England and Wales
Perhaps it’s because Homes Under The Hammer has become our guilty pleasure in lockdown, or that more of us are hoping to make a quick buck in hard times.
Whatever the reason, the proportion of homes being flipped – sold twice within a year – is at its highest level for 12 years.
Flipping a home is a relatively speedy way to earn cash, perhaps by making improvements to a fixer-upper, like the ones often featured on the BBC daytime show, and putting it back on the market.
It is the highest proportion of transactions being flipped since 2008 – the year of the financial crisis – when 3.3 per cent of properties were flipped [File photo]
And the earnings aren’t to be sniffed at. Hamptons International said that the average profit is £40,995.
The estate agency said that so far this year 2.5 per cent of homes sold in England and Wales have been flipped, which could equate to 23,000 transactions by the end of 2020.
It is the highest proportion of transactions being flipped since 2008 – the year of the financial crisis – when 3.3 per cent of properties were flipped.
Burnley in Lancashire was named the flipping capital of England and Wales for the sixth year running. Hamptons estimated that nearly one in ten homes sold there are flipped.
The North East and North West see high proportions of homes flipped because of lower house prices, Hamptons added.
The estate agency said that so far this year 2.5 per cent of homes sold in England and Wales have been flipped, which could equate to 23,000 transactions by the end of 2020 [File photo]
Aneisha Beveridge, head of research at Hamptons International, said: ‘Flipping generally involves buying, renovating and selling a home over a short period of time, in most cases for a profit.
‘Flippers play an important role in the housing market by improving housing stock and taking on projects other buyers often won’t touch.’
Ms Beveridge added that the current stamp duty holiday could eventually knock Burnley off its top spot.
She said: ‘Burnley has cemented itself in the top spot for the last six years as it’s one of the few places where investors can purchase a home without paying any stamp duty.
‘And while the current stamp duty holiday will see flippers across the country save money, its full impact won’t be felt until early next year when these homes are likely to return to the market for sale.
‘Given investors in more expensive areas will see larger stamp duty savings, there is potential for Burnley to be knocked off the top spot before too long.’
What areas have the highest proportion of flipped homes?
Here are the top 10 local authority areas with the highest proportions of flipped homes over the past year, according to Hamptons International:
1. Burnley, 8.2%
2. County Durham, 5.8% along with Rutland, 5.8%
4. Middlesbrough, 5.5%
5. Stockton-on-Tees, 5.4%
6. Wolverhampton, 4.7%
7. Hyndburn, 4.6%
8. Merthyr Tydfil, 4.5%, along with Darlington, 4.5%
10. Walsall, 4.4%