Latest news with #HamptonsResearch
Yahoo
4 days ago
- Business
- 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. Shop Top Mortgage Rates Personalized rates in minutes A quicker path to financial freedom Your Path to Homeownership 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
4 days ago
- Business
- 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
Telegraph
16-05-2025
- Business
- Telegraph
Super prime properties in south-west London
South-west London has long been popular with those wanting to escape the frenetic lifestyle of the city, while continuing to have access to it. But the pandemic's 'race for space' changed all that, supercharging this part of the capital and giving the likes of Chiswick, Barnes, Wimbledon, Putney and Richmond super prime status with price tags to match. According to Hamptons Research, since 2008, house prices have increased by 72 per cent in Wimbledon, 69 per cent in Barnes and 61 per cent in Chiswick, and properties selling for more than £1m have skyrocketed. In Barnes only 25 per cent were priced above this in 2008; by 2024, this had risen to 54 per cent and it's a similar story in Chiswick, Putney, Wimbledon and Richmond. 'South-west London, with its collection of 'villages' and access to the outdoors, became a magnet for affluent buyers looking to upgrade their lifestyles but not lose the convenience of being in London by moving out to the country,' says Georgie Bolton of buying agents Property Vision. 'The momentum that began in 2020 hasn't slowed down – if anything, it's evolved, with international buyers returning to London.' Education is an important factor with both domestic and international families moving here to take advantage of the world-class independent schools. 'This remains a massive draw: King's College School, The Harrodian, Ibstock Place, and now the new St Thomas's in Richmond opening this September, are shaping property decisions years in advance,' says Kesha Foss-Smith at John D Wood & Co. 'To have a co-ed school on Richmond Hill is an exciting addition to the options of schools locally and will draw families to the area, along with enabling existing residents to remain local,' adds Knight Frank 's Luke Ellwood. Along with its quick links into town, London's new breed of tech entrepreneurs is discovering the SW benefits from its access to Heathrow, perfect for jetting off to Silicon Valley. The airport's proximity is also significant to buyers from Western Europe, the Middle East, America, China and India, making for a truly global feel. While super prime south-west London as a whole is characterised by its expansive parks, large period homes and boutique shops and cafes, there are notable differences. 'Barnes tends to draw a more family-oriented, artistic crowd, with many wealthy buyers looking for a tranquil riverside setting,' says Russell Gooden at Hamptons. 'Richmond, on the other hand, appeals to a more established upper-middle-class demographic, often from traditional wealth sectors.' Bolton adds that Chiswick has risen in popularity, especially among younger families and professionals in the media and creative industries. Prices for super prime properties start at around £10m and go up to £30m, with hotspots such as Richmond Hill, Barnes' waterfront homes and Wimbledon's Parkside, Marryat Road and Parkside Avenue most in demand. With houses often hitting the market once in a generation, off-market deals are the norm, and around 40 per cent are sold that way. 'This level of the market more often than not goes back to the 'little black book' days of agency, where buyers will come to us with their requirements and rely on us to find them the right property,' says Robin Chatwin, a director of Savills. Unlike prime central London, where homeowners are more limited by space and planning controls, here you can go all-out when it comes to facilities. 'With advancements in basement building, many homes now come equipped with large subterranean entertaining spaces including spas, swimming pools, walk-in wine cellars, cinemas, treatment rooms and golf simulators. Air conditioning, intelligent lighting and irrigation are now staples to any super prime home,' says Sam Sproston, consultant at UK Sotheby's International Realty. It's not uncommon to see bespoke interiors, state-of-the-art kitchens featuring teppanyaki stations, private gyms and both indoor and outdoor swimming pools. 'For families, dedicated children's zones are a stand-out feature, complete with custom-built treehouses, some of which start at an eye-watering £150,000. And, when it comes to convenience, underground car lifts and turntables are the latest additions, blending innovation with indulgence. These properties don't just offer space, they offer a curated, luxurious way of life,' says Bolton. This lavish lifestyle can be seen in the range of independent and premium businesses popping up. 'Restaurants such as Scott's Richmond and The Ivy Cafe Wimbledon Village have elevated the local high streets,' says Sproston. Meanwhile, Rick Stein, Petersham Nurseries, Ottolenghi and health club, Third Space, have had a serious boost from the super prime influx. 'In Wimbledon, the ever-present queue outside Demitasse is a clear sign of its popularity, while the fresh produce at Bayley & Sage remains a consistent draw for locals. Over in Barnes, the recently opened Waterman's Arms has quickly become a hotspot,' says Bolton. 'A particularly interesting development is the rise of family members' clubs across south-west London – most notably the Little Houses group. These clubs are setting a new precedent by combining juice bars, childcare, and co-working spaces all under one stylish roof, offering a holistic lifestyle experience for modern families.' Unlike many of the countryside locations that are feeling the bust after the Covid boom, south-west London offers its super prime inhabitants the best of both worlds – proximity to the capital, along with a villagey, country feel. And its desirability is only set to grow.
