Are we about to see a surge in property flipping?

The Renters' Rights Bill may well accelerate a shift from long-term buy-to-let to short-term flipping, especially among landlords already disillusioned by tightening regulation and diminishing returns. While designed to protect tenants, the bill adds further complexity and cost for landlords, pushing many to rethink their strategies. Flipping offers quicker profits without the hassle of managing tenants—but it’s not without risk. With high interest rates, increased renovation costs, and market uncertainty, flipping isn't the golden ticket some imagine. The bill may deter investment in the rental sector just when supply is most needed, potentially worsening the rental crisis long-term.

The Renters' Rights Bill may push some landlords away from buy-to-let, but a mass shift to flipping properties isn't guaranteed. While stricter regulations could lead to increased property sales, flipping requires a different skill set, risk tolerance, and financial strategy. While it offers potential for quick profits and avoids rental regulations, high transaction costs, market risks, and the need for expertise make it challenging. Some landlords may choose to exit the market entirely rather than adapt.

We are seeing a rise in the number of enquiries of people looking to fund property purchases with a view of renovating them to either sell or remortgage at a higher value to get their money back out. I think this increases is a result of two things, first being that the return on investment on ready made properties have been shrinking for a number of years and people are now looking for the 'worst house' in the 'best street' to help get a better return. Also, a lot of people are seeing social influencers flipping properties which sparks people into exploring this avenue rather than a traditional buy to let. The clear advantages of going down this route is the quicker return on investment. However we have had many people, particularly people doing this for the first time, become unstuck quickly due to hidden costs that where not budgeted for and actually losing money on their investment as a result.

While the Renters’ Rights Bill may prompt some landlords to reconsider their position, we’re unlikely to see a widespread shift towards property flipping. Flipping carries its own risks with rising material costs, market volatility, increased demands at auctions, and higher tax exposure. That said, some investors may pivot to short-term strategies as they exit traditional lettings. Flipping does offer some advantages: quicker returns, no tenant-related regulation, potential for strong capital gains in active markets, and greater flexibility to respond to market conditions. However, any shift is likely to be selective rather than significant.