Do property flips work as a strategy in 2025?

The last few decades have seen enormous changes in the dynamics of the property market, huge advances in internet use and access, and shifts in what buyers are looking for, with flipping homes undergoing positive and negative transformations along the way.

Flipping properties, also known as ‘buy to sell’, is still a popular investment strategy, which has evolved since its heyday in the 1990s and the baby boomer generation, who have benefitted from decades of increasing property values. Although it’s true the boomers had to deal with a high 17% mortgage rate for a period, back in the 1970s-1990s, first time buyers had a 3.5-4 times salary ratio, compared to roughly 8 times in 2025, a stark increase.

In the 90’s, our parents recall there being ample opportunity for buyers to find undervalued homes and make substantial profits, by doing them up and selling them on, with far less market competition. Overall, house prices were lower, increasing the return on investment. Lending practices were more lenient, as too were regulations on conveyancing practices, making sales quicker. Bidding wars and gazumping seemed less common as those looking for property projects were serious buyers; there was no scrolling through the Rightmove app on your phone in your lunch hour and stumbling across an investment dream.

According to a 2024 report from Hamptons, the flipping trend peaked in 2007, when 3.7% of all properties had been purchased in the previous 12 months, with the financial crisis meaning numbers fell. This was climbing again until the Covid-19 pandemic when it dropped, then climbing steadily until the war in Ukraine had a drastic impact on the costs of materials, which, combined with every-increasing mortgage rates and a slowing property market, have made it much more challenging to make a good profit with this strategy.

In 2025, investors now have such easy access to online property portals, and land registry information giving a complete history on property sold prices. Cost of materials and labour has risen substantially, increasing market demand for already renovated properties. Tighter financing options and higher property prices have impacted profit margins but also we believe the availability of renovation projects such as Yaru in Stedham are few and far between; gone are the days of picking up a bungalow and popping a first floor on it  So when these little gems do come up, every savvy property hunter wanting a challenge and blank canvas is there in a  flash. However, don’t be lured in by a beautiful property, there are various boxes these properties must tick in order to give you the best profit margin; don’t miss the common pitfalls.

If you are considering flipping a property, here’s our guide to working out if a buy-to-sell strategy might be worth considering.

You need to work out -

• Purchase Price: The cost of buying the property.
• Renovation Costs: All expenses for improving the property.
• Selling Costs: Fees and taxes associated with the sale.
• Gross Profit: Sale Price - Purchase Price - All Costs.
• Net Profit: Gross Profit - Taxes.

Here are our top tips:

Look to buy below market value – you may find these off-market or at a property auction – and then aim to resell at the full market value.

Be wary of buying costs – don’t miss anything off your list. Legal fees, stamp duty, financial charges, interest and insurance. Don’t be caught out by not considering every financial step along the way.

Calculate selling charges – be mindful of all the costs involved in the process and future sale of the property, including estate agent fees, legal costs and tax. If you need to factor in any minor repair and refurbishment costs before putting the property back on the market, it’s vital to include this. Any major works could mean a lengthy and expensive project, so be wary of any significant issue with the property that could erode the profitability drastically or even risk you losing all profit.

Be mindful of current market property trends – consider what the marketing will be doing in the time you will probably need to get the property ready to go back on the market. Speak to your local estate agent for friendly and sage advice!

Timing is everything – as we’ve mentioned, you should aim for a short time period for the project, to minimise your risk and reduce future unpredictability of market trends impacting your end profit. Sell at the best seasonal time of year – again speak to us and we can advise you.

If you are considering flipping a property in the near future, pick up the phone and let us know. We’ll be delighted to advise you and keep an eye out for what you’ve got in mind. Call us for Midhurst and surrounding areas on 01730 779844, or for Chichester, dial 01243 908084. If you prefer to write to us, please message us via this form.