Ailbhe Rea: Will Rachel Reeves Bring In a Wealth Tax?
Reeves has ruled out increasing the three big revenue raisers (income tax, VAT and national insurance) but quite conspicuously didn't rule a wealth tax out when asked a few weeks ago, amid calls from the left of her party and former Labour leader Neil Kinnock to introduce an annual 2% tax on wealth above £10m.
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Yahoo
12 minutes ago
- Yahoo
How you can still make money from flipping property
In the Nineties and Noughties, a significant number of property investors — and ordinary owner-occupiers — were making large amounts of money from buying properties in need of refurbishment, doing them up quickly and selling them on at a profit, aka flipping. But, 20 years on, this practice is much less common. According to recent figures from Hamptons Research, in the first quarter of 2025, the proportion of homes bought and then re-sold within a year (ie flipped) fell to 2.3% across England and Wales, down from 3.6% in Q1 2024. This equated to 7,301 flipped homes in Q1 2025, 27% below the 10-year Q1 average. The average profit of these Q1 2025 flips was £22,000 and Hamptons found that while 80% of flipped homes were sold for a higher price in Q1 2025, only 66% made a profit. So, how can you still make money from flipping? We spoke to several experts to find out. Why has flipping property become less profitable? While there are several factors eating into flippers' profits, the main one is stamp duty. Not only have rates increased over the last 20 years, but property price inflation means that more properties are liable for this tax, while investors with multiple properties have to pay stamp duty at an additional rate. Read more: What are branded residences and who's buying them? 'Bigger stamp duty bills are wiping out a lot of profit from flipping. The 5% surcharge for investors, coupled with a reduction in the point at which buyers start paying stamp duty, means it's harder than ever to make the sums stack up,' says Aneisha Beveridge, head of research at Hamptons. The average stamp duty bill which was once around 10% of a flipper's gross profit, now swallows up around 30%. 'As recently as 20 years ago the highest rate of stamp duty was 2%. Now it is 12%, plus an extra 2% if you are an overseas buyer and an additional 3% if you own a property anywhere else in the world. So, you could be paying as much as 15% of the value in tax,' flags Marc Schneiderman, director, Arlington Residential. Renovating a property has also become more expensive, meaning investors need to pay out increasing amounts initially. 'Renovation costs have also risen, while inflation in both labour and materials, along with new compliance requirements such as energy efficiency standards, has increased upfront investment and overall project risk,' says Caroline Marshall-Roberts, CEO and founder of BuyAssociation. Read more: The pros and cons of buying property off-plan Sarah Walker, owner of Walker Hall Estate Agent, gives the example of a kitchen refurb. 'A kitchen that might have been £8,000 just a few years ago can easily come in at £15,000 or more once you factor in appliances, fitting and VAT.' What's more, the reduction of the capital gains allowance and stricter rules on what can be claimed on this make tax-efficient renovations difficult. 'Combine this with uncertain market timing and tighter lending conditions, and today's property investors looking to flip properties are dealing with thinner margins and greater exposure to downturns,' adds Marshall-Roberts. Which areas of the UK are still profitable when it comes to flipping? There are still areas of the country where you can flip and make a profit. According to Hamptons Research, the North East is the only region where flipping has become more common over the last decade. This is predominantly due to the prevalence of homes costing less than £40,000, well below the stamp duty threshold of £125,000. 'We still see some success in parts of the North West, in particular in certain areas of the Wirral, where property prices are lower and demand is steady,' says Liam Gretton, Bespoke Estate Agent. 'Buyers are also looking in areas with planned regeneration, where prices are starting to rise.' While there are general regional patterns of flip profitability, Walker believes it's more likely that a good hyper-local knowledge will help you find a suitable property. 'You need to understand which streets, which styles of homes, and which improvements genuinely add value in your patch. Forget national 'hotspots.' Success comes from knowing your area inside out and running the numbers with zero room for guesswork.' What types of houses are good for flipping? In terms of what makes a successful flip property, many of the age-old rules still hold true. 'Probate sales, long-held family homes or rentals that haven't been touched in decades are the sweet spot. Dated kitchens, pink bathrooms, swirly carpets, all perfect,' suggests Walker. Read more: What is pre-application planning and can you do it yourself? With the cost of renovations high, you're looking for properties that have good bones, are structurally sound and just need cosmetic modifications. With the age of first-time buyers increasing, larger, family homes are increasingly in demand and, therefore, have more flip potential. 'Investors looking to flip property should focus on three- or four-bedroom semi-detached houses. These homes tend to appeal to families and young professionals, increasing the likelihood of a quicker sale and a stronger return,' says Marshall-Roberts. 'Terraced houses and standard flats in residential blocks can also make good flip candidates.' In contrast, luxury homes with large stamp duty bills come with higher stakes attached. 'High-end homes or unusual properties are harder to flip quickly and carry more risk,' says Gretton. While flipping can be seen as a way of making a fast buck, Gretton flags that there are hidden benefits and that it has its place in the property market. 'It brings older or neglected homes back to life, creating more modern, liveable spaces that are ready for today's buyers or renters. It also helps maintain and support local property values especially in areas where tired housing stock might otherwise drag the market down.' Read more: How school fees can affect your mortgage borrowing The pros and cons of getting a mortgage into your 70s Pros and cons of lifetime ISAs
Yahoo
12 minutes ago
- Yahoo
'New tax is putting young people off farming'
A farmer who has been making cheese for 25 years says her daughter and future successor is "disillusioned" by tax inheritance proposals. From April 2026, inherited agricultural assets worth more than £1m, which were previously exempt, will be liable to inheritance tax at 20%, half the usual rate, the Labour government announced in The Budget last autumn. Liz Godsell, who farms in Frocester in Gloucestershire, said her daughter is "very interested" in farming but more needs to be done to encourage younger people into the industry following the announcement. The government said most estates claiming Agricultural and Business Property Reliefs will be "unaffected" by the tax change. More news stories for Gloucestershire Listen to the latest news for Gloucestershire Ms Godsell of Godsell's Cheese said her family were "quite alarmed" following the tax announcement. She said farmers, who are "asset rich, cash poor" produce "the most important thing you need to live", food, but do not feel valued by the government. "It's a long day, not very good pay, but we've got passion and we need to be rewarded with some profit," she said. "I think what the farm inheritance tax hasn't taken into consideration is land is very expensive but that is one of our tools. "It's going to mean a lot of family farms are going to go." Ellie Isaac, a senior surveyor at property experts Bruton Knowles, said it is "really important" for farmers to speak to their families and mitigate inheritance circumstances ahead of time. "Keep your records as up to date as possible," she said. "No one wants to talk about when husband, wife, mum, dad passes away but [people should] talk about it so you know what the plan is, make sure wills are up to date, and people are aware of who is being passed what." Mr Day from the NFU said the news of the inheritance tax had left its members "devastated". "Farmers aren't earning a lot of money because commodity prices are so low," he said. "Inflation is so high... this is an additional tax now that we've suddenly got to go and find the money for at a time when agriculture is at its lowest ebb." The government said most estates claiming Agricultural and Business Property Reliefs will be "unaffected" by the changes. "The latest data shows that 40% of Agricultural Property Relief - worth £219m - was directed to just 117 estates," A HM Treasury spokesperson said. "The money raised will go towards public services we all rely on every day instead. "We're investing billions of pounds in sustainable food production and nature's recovery, slashing costs for food producers to export to the EU and have appointed former NFU president Baroness Minette Batters to advise on reforms to boost farmers' profits." Follow BBC Gloucestershire on Facebook, X and Instagram. Send your story ideas to us on email or via WhatsApp on 0800 313 4630. More on this story Most farmers won't pay inheritance tax, PM insists Farmer and government rift remains, NFU leader says Related internet links NFU
Bloomberg
14 minutes ago
- Bloomberg
UK Opens Critical Wind Power Auction With Costs Set to Rise
The UK opened applications for the latest offshore wind subsidy auction as the government tries to secure enough capacity to make it possible to run a carbon-free electricity grid by 2030. The process, which guarantees the price of power for renewables developers, is crucial this year as it's one of the last opportunities to line up capacity that will be operational by the end of the decade. To attract projects, the government increased the maximum electricity price on offer compared to last year but that could make it more difficult to lower bills for consumers, which it has also promised to do.
