New figures released this week by agents Hamptons International have shown that the number of properties being bought and sold within a year for quick profit in London has dropped by almost 90% since the flipping boom of the early noughties.
According to the Homes and Property website, last year just 1,240 homes were bought and sold within 12 months in the capital.
That’s an 86% drop compared to 2002 when 8,380 were bought and sold within a year.
In some areas flipping has almost completely disappeared with just six such transactions recorded in Islington and 10 in Camden and Kensington & Chelsea in 2018.
Soaring prices, easy access to mortgage debt, and gazumping made it easy for “amateur developers” to make vast profits from hurried refurbishments of “fixer uppers”.
But stagnating prices, slower sales and higher taxes have made it far harder to make money out of a quick buy and sale.
So is flipping property for a quick profit dead?
Flipping a property for quick profit might not be dead in 2019 but it’s certainly become more challenging.
But for those who know what they are doing – or work with people who do – there are still great opportunities all across the UK for property investors to make money from flipping, or by building a long term property portfolio.
If anything these changes have decluttered the market.
But it shows it has never been more important to have experienced support and a property network who can access and finance below market value deals.
Surround yourself with those in the know
At M3 we specialise in helping new investors and experienced developers profit from property.
If you would like us to help source funds for a below market value property just contact us here.