5 August 2019
The number of properties being ‘flipped’ i.e. sold more than once in 12 months has fallen since it’s peak in 2004.
In 2004 over 60,000 homes were sold more than once, comparing to just over 18,000 last year.
This equates to £3.9bn of property flipped versus £8.2bn since its peak – factor in considerably higher prices than we had in 2004 and the difference is stark.
The data has been accumulated by Hamptons International who explain that the ‘art of property flipping is to buy, renovate and resell at a profit.’
Jonathan Rolande of House Buy Fast explains “In a static market it is extremely risky to buy property in the hope of making a quick profit – a risk made higher by the increased cost of Stamp Duty that can often top £10,000 on a single transaction.”
“Because professional buyers are set up for high volumes, margins can be lower and the risk spread – these new figures indicate that the amateur buyers are not risking a purchase but certainly we are buying more than ever before. But crucially value has to be added, be it a new kitchen, sorting out a legal problem or short lease or a full refurbishment.” Says Jonathan. “The days of buying and relying on a market increase have gone for now which is a very good thing for the market as a whole.”
It is estimated that members of The NAPB purchase around £1.5bn of UK property every year – approaching half of the entire property trading sector.
This content has been provided to us by the writer. Whilst believed to be factually correct, we cannot accept responsibility for content contained within it.