Is flipping houses still profitable in 2023 UK?

The concept of flipping houses is pretty simple; an investor buys a house at a relatively lower price, renovates and upgrades it and then sells it for a higher price all within a short period of time. Estate agents in Doncaster believe that flipping houses is quite a profitable endeavour, especially if you’re doing it correctly. Just like any good property investment strategy, house flipping requires planning and a thorough plan of action. This brings us to the question at hand, is house flipping still profitable in the UK in 2023?

Halifax predicts that property prices in the UK will drop by a whopping 8 per cent in 2023. However, Hamptons believes that property prices will remain the same in 2023 and will rise by 2 per cent in 2024. Similarly, Nationwide believes that property prices could drop by 5 per cent in 2023 while Savills believes that property prices will increase by 3 per cent in 2024.  Well, looking at the rising property prices in the UK in the past few months, and if the property prices are expected to fall and then rise again, it seems that house flipping is still quite profitable in 2023.

While property investment is a long-term strategy, house flipping is a short-term strategy often known as the buy-to-sell strategy. When done correctly, house flipping can provide a higher return on investment than any other form of property investment, especially in a short time period. In essence, to successfully flip a house for a profit you need to do your due research, find the right property and time everything just right. Here is how you can successfully flip a property in the UK in 2023 for a profit!

Find the right property

To find the right property to flip, you need to find a property that is below the average market value. One way to find a good deal is by being a cash buyer. Sellers are willing to lower the selling price, sometimes below the market value, if they receive a cash offer. Also, you can consider buying properties at an auction as these are usually below the market value. By buying a property that is under the market value, you have a high chance of being able to resell the property at market value or higher.

Evaluate all the costs carefully

Flipping houses is not just about buying a house at a low price and selling it at a higher price. A whole lot of money also goes into renovations, upgrades as well as repairs. Also, let’s not forget about other associated costs such as stamp duty, insurance, legal fees, interest payments and so on. Furthermore, remember to account for associated selling costs such as estate agent fees, capital gains tax, conveyancing fees and other such costs. So, before you invest in a property, be sure to evaluate the costs to figure out how much profit you can make when you decide to resell the property.

Understand the local market

First and foremost, you need to understand the local market and the local demand. If you are house flipping in a major city, try to figure out what kind of homes potential buyers are interested in. Secondly, you need to do your due research about the local prices and price trends. Figure out where the local prices are rising and where they might fall. For example, if a new highway is coming up somewhere then the price of property in that area will probably rise in the near future.

Time it right

At the end of the day, profitable house flipping is all about timing. You need to be able to flip the house and sell it in a short period of time to make a profit. If there is a period when property prices are falling then try to buy a property when the prices reach the bottom and try to sell it as soon as the prices reach a decent high. Similarly, if the prices are rising, try to find a property below market value and attempt to sell it when the prices are at their peak. Basically, you want to buy a property at the lowest possible price and sell it at the highest price – this requires market research and a thorough understanding of price trends.

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