Investors prioritising high-yield rentals over quick flips
In the past, 'quick-flipping' property was a large part of the investment market, in which investors would buy worn-down, damaged properties at a low price, renovate them to a much higher standard, and then sell on for a profit. The market has been shifting over the years, and it's now clearer than ever that most investors are much more interested in the long-term stability of rental yields than in the shorter-term quick wins.
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A once-popular investment strategy is losing its appeal, with just 1.4% of homes bought and sold within 12 months in the first 6 months of 2025, which is the lowest figure on record since 2013.
Investors are holding onto assets for a longer time period, with a concern that the market is now feeling too stagnant to be able to effectively maximise capital appreciation.
A recent tax and policy change to how Stamp Duty is applied has meant that on additional homes, a 3% surcharge has risen to 5%, and with the temporary threshold increases rolled back, investors are facing higher taxes on what would previously have been considered a modest property purchase.
Rental yields hit multi-year highs
According to the Zoopla Q3 2025 Rental Index, rents are up 7.1% year-on-year, which means that they are outpacing the house-price growth for the 27th month in a row.
The cost of materials and labour for building projects has gone up massively, so getting a level of profit out of flipping is difficult. We're seeing more investors looking for other ways to increase cash flow and returns.
Guy Nyirenda, Head of Commercial & Specialist Lending @ Altura Mortgage Finance‘‘’’
The expectation is to see this same approach carry well into 2026, as the current investment environment that faces higher taxes, slower growth, and a stronger rental demand is much more rewarding to those who can keep hold of and effectively manage properties opposed to flipping.
If you've previously been heavily involved in the world of property flipping and want to know more about how to take steps into another avenue of the investment market, our team are on-hand. Reach out today to find out more about how we can help.
