The numbers are stark. Home flipping (buying a property and quickly reselling it for profit) has more than halved in the past decade, and the returns left standing barely cover the tax bill. For SA (serviced accommodation) operators, that shift matters more than you might think.

What the Hamptons Research Shows

Hamptons estate agents published research in April 2026 revealing that 10,570 properties were flipped in England and Wales in 2025. That compares to 21,520 in 2016 - a fall of more than 50% in under ten years.

The share of all transactions that involved a flip dropped to just 1.5% in 2025, down from 2% the year before, according to the same Hamptons data.

Profit margins tell an equally uncomfortable story. Average post-stamp duty profits per flip fell from £36,500 in 2015 to £16,390 in 2025 - a drop of more than 55%, Hamptons found. Stamp duty costs now account for 43% of gross profit on a typical flip, equivalent to around £12,400 per transaction.

The stamp duty surcharge on second homes in England and Northern Ireland - originally set at 3% and raised to 5% from 31 October 2024 under the Autumn Budget 2024 - is the single biggest drag. Scotland and Wales apply separate land transaction taxes with different surcharge structures. Hamptons also noted that the £16,390 average profit figure does not include refurbishment costs. Once those are factored in, only a minority of flipped properties are likely to have delivered any net return at all.

Why This Matters for Your SA Operation

When flipping stops making sense financially, owners hold. And when owners hold, they look for ways to make a property work harder. That is where the SA market comes in.

The trend towards longer holding periods, combined with rising interest in limited company structures (Hamptons reported a record 61,517 landlords incorporating in 2024, up 23% on the prior year), points to a property investor base that is professionalising rather than exiting. Many of those investors will be weighing up their options: long-term let, short-term rental platform, or something in between.

For established SA operators, this could bring more stock into your local market as new entrants convert properties they originally planned to flip. More supply means more competition for guest demand, particularly in markets that already have high listing density.

On the other hand, if you run a well-managed, well-reviewed SA property, a softening flipping market works in your favour in one specific way: fewer properties cycling through quick sales means less price volatility in your area, which gives you a more stable asset base to plan around.

One practical consideration for anyone thinking about converting a held property to SA: check your local authority's short-term let registration requirements before listing. The government introduced a mandatory short-term let registration scheme for England, which became operational in 2025 (MHCLG, 2025). Local councils can also apply for planning controls in their area. Operating without registration where required can result in enforcement action and fines.

Checking Your Position Before You List

Before listing any property on a short-term rental platform, two things are worth doing. First, verify the registration requirements in your local area - some councils have additional licensing conditions beyond the national scheme. Second, if you are converting a property that was previously owner-occupied or kept vacant, check whether you need planning permission for a change of use in your specific area.

Investors who held properties through the pandemic and paused their exit plans may find this a natural moment to reassess. If flipping margins have fallen below refurbishment cost, the hold-and-operate model - whether through a long-term let or SA - deserves fresh numbers. You may wish to speak to both a letting agent and an accountant before committing to a strategy.