You’d be hard-pressed to find someone in Britain who’s never seen a property flipping show on TV.
From Homes Under the Hammer to George Clarke’s Flipping Fast, these programmes have helped popularise flipping, not just as a hobby or a pastime, but as a legitimate investment strategy.
And in 2025 the concept of flipping is back in the spotlight.
With the new Labour government promising bold action on the housing crisis — including £39bn to accelerate housebuilding via its social and affordable homes programme — there’s renewed focus on how the private sector can help bring more homes to market.
Considering that there were more than a million empty homes in England in 2022, according to a report from the Local Government Association and the Empty Homes Network, I’m still surprised at the lack of serious attention given (or rather, not given) to the significant role flipping can play in boosting housing supply.
What’s more, thanks to the popularity of property investment influencers on social media, there is a new generation of investors looking to pick up properties at lower prices, renovate them, and put them back into circulation at a profit.
But, of course, it would be remiss of me to suggest that flipping is straightforward.
It is complicated, there are challenges, and profits are by no means guaranteed — far from it.
There’s a risk that TV shows and social media content provide a sanitised, overly simplified view of what can be a complex process.
So, with such stark opportunities, coupled with often understated challenges, this is a topic worthy of exploration.
In particular, the key questions are:
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What considerations should prospective property investors be making before embarking on a property flipping project?
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What can advisers and brokers do to support them?
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What is the role of specialist lenders in the property flipping market?
Do the benefits outweigh the downsides?
The concept of flipping has a clear appeal: find an asset with potential for value added through renovations, refurbishments or extensions.
Then relist the asset to sell for a profit, or use it as buy-to-let (BTL) property to achieve rental incomes while awaiting for further long-term capital appreciation should house prices rise year on year.
It is an established formula, and the appeal is especially strong in the UK property market, which is characterised by persistently high demand and limited supply.
It means homes can be bought, renovated, and sold at a premium, particularly if the improvements align with buyers’ or tenants’ needs and tastes.
For example, Legal & General data shows that buyers are willing to pay a 10.5 per cent premium for a low carbon property.
What this shows is that flippers can actively add value through refurbishment (green or otherwise), rather than waiting for external factors to increase a property’s prices.
There is, however, no guarantee that the end of a project will be met with a profit.
Indeed, those aforementioned TV shows frequently include stories of an investor who underestimated the cost of works, ran into delays or uncovered unforeseen issues with the property they bought.
In the current climate, which is defined by higher borrowing costs, materials shortages and rising labour costs, timelines and budgets for building works are often pushed to their limits, reducing the speed or margins at which investors can turn a profit.
On that note, it’s important to recognise that some figures place the cost of a three-bed renovation between £43,000 and £110,000, and this can rise by 10-15 per cent when unexpected costs are factored in.
As such, without strong project management, budgeting discipline, and market insight, the risks could quickly outweigh the potential rewards.
Making a flip a success
That said, the fundamentals of the UK property market remain strong, so well-executed flips can still present a clear path to profit.
For instance, another property TV show borrows an adage that rings true in the flipping world: location, location, location.
As such, it’s important that investors can secure properties in areas that are enjoying strong demand or growth to ensure they get the best return on investment.
As part of that decision, whether the property will be sold or let once completed is another important consideration.
Those who choose to sell enjoy a faster return on investment and avoid the hassle of ongoing property management, though capital gains and sales taxes can affect overall profits.
Meanwhile, renting can offer a steady income stream and the change for long-term growth, provided the property isn’t left vacant for extended periods.
But this does also come with the added responsibility of managing the property or hiring a third party.
Role of the lending markets
Another important consideration is finance, and this is where brokers have a vital role to play.
As I have already touched on, the cost of renovating a property has risen significantly in recent years, owing to supply chain issues, labour costs and wider macroeconomic trends like inflation.
Therefore, some investors will require additional capital to embark on a flipping project with speed and flexibility — particularly if they’re buying a property at auction, which is where many flips begin.
At auctions, buyers often have just 28 days to complete a purchase. Traditional lenders usually take weeks or months to process applications, which can cause investors to miss out on prime opportunities.
However, specialist lenders and bridging loan providers offer a faster alternative, delivering decisions and funds within days.
They also tend to be more flexible and can take into account the potential future value or rental income of properties — especially those undervalued or in need of renovation — that high street lenders often shy away from.
Brokers will act as the all-important missing link here. First and foremost, they are essential in educating prospective property flippers about the options available to them from a finance perspective.
Thereafter, strong ties between a broker and a lender well placed to support an investor with a flipping project will improve the chances of successful and frictionless loan applications.
It is something we ought to keep shouting about.
The large number of empty homes in the UK — properties that find themselves in a state of disrepair — presents a significant opportunity for investors to grow their portfolios while addressing one of the country’s most pressing social challenges.
However, many will depend on specialist finance to bring these projects to life.
By adapting our offerings to better support these investors, and forming close relationships with the broker community, the lending sector has a unique opportunity to drive meaningful change — not just for investors, but for the UK’s housing crisis as well.
Paresh Raja is the founder and chief executive of Market Financial Solutions