The Intermediary – February 2026 - Flipbook - Page 43
"Investors must have a clear exit strategy, robust
costings, and reliable contractors.
“Thorough due diligence is essential. Investors
should analyse their figures carefully, understand
their exit, and avoid emotional decisions that
Fix and flip
In Numbers
drive unnecessary spending.”
Future outlook
Despite tighter regulation and a more
demanding operating environment, the fix and
flip model could emerge as a key fixture in the
market in 2026 and beyond.
Rental pressures, housing shortages and the
growing pool of stock requiring intervention
should underpin demand, while auctions
remain a key route for assets that no longer fit
mainstream lending criteria.
When asked about the future of the trend,
Collar-Brown remains optimistic. He says: “As we
head into the new year, we are expecting to see
more properties in need of refurbishment and
commercial investments coming to auction.”
Activity, however, is becoming more selective.
As Mann notes: “I expect the market to remain
busy but disciplined. Opportunities will be
strongest for borrowers who understand
their numbers and focus on adding real value,
particularly through refurbishment and energy
efficiency. The biggest risk is over-optimism –
assuming costs will fall quickly or exit values will
always rise.”
On the funding side, competition remains
intense. Gill cites increased lender activity as they
continue to diversify their funding lines.
He explains: “There are attractive yields and
returns to these investors and funders, so this
will continue to fuel and keep heating up the
market until there is not enough business to
support all of these lenders, at which point we
will start to see some exiting the market.”
Looking ahead, Cappaert says: “Auction
finance and refurb bridging are likely to remain
central tools for active investors.
"The ability to buy well, add value, and create
compliant, efficient stock will be more important
than relying on passive capital growth.”
While demand for finance tied to EPC
upgrades, conversions and underperforming
assets is expected to remain strong, lenders
are tightening scrutiny around experience,
costings and exit viability. In that environment,
execution will remain the key differentiator for
market players.
Cappaert concludes: “The opportunity lies in
Average gross profit per flip £22,000
in Q1 2025
Peak gross profit £38,000 in 2022;
average profit has halved since then
Profit margin Average gross profit
declined from 17% in Q1 2015 to 10% in
Q1 2025
Proportion of flips in transactions
2.3% of all sales in England and Wales in
Q1 2025
Flips making a profit after Stamp
Duty 66% of flips in Q1 2025 were
profitable after Stamp Duty
Regional shift 61% of flips occurred in
the Midlands, North of England, or Wales
in Q1 2025, up from 50% a decade ago
North East hotspot 4.7% of all homes
sold in the North East in Q1 2025 were
flips, double the national average
Highest cash return by region Average
profit per flip in London was £93,730 in
2022, despite lowest flip proportion
Most profitable region proportionally
Wales saw a typical 39% (£42,310) gain per
flip in 2022
Typical refurbishment spend Majority
of flippers spent £11,000 to £25,000
per project
Completion speed 68% of flips took less
than six months from purchase to resale
professionalism: those who treat fix and flip and
refurb as a disciplined, numbers-driven business
[...] are best placed to thrive in the next phase of
the market.”
Source: Hamptons
February 2026 | The Intermediary
