London Market Slump Causes Flippers to Look Beyond Capital
Read the latest Junaid Iqbal Memon blog. Junaid is a property developer that has been in the business for several years. Based in Dubai and London, he has properties and businesses in both cities. Always on the lookout for profitable opportunities, he made the decision to venture into real estate to diversify his investment portfolio. To date, he has successfully completed several development projects both in London and Dubai. Below he reveals how property speculators are going to the north due to London’s property market slump.
Flippers are looking outside of London as the price for houses continues to rise. Property speculators in the country who are in the business of buying and selling properties in quick succession are now shifting their focus towards the north of the market as it seems that the south-east and the London housing markets start to slump.
Of the 15 destinations that are most popular with people in the business of flipping homes, 11 were located in the north of the country. None of the 15 was located in the capital, which is quite a stark contrast to the preceding years.
Growth on house prices in London slowed down even almost to a standstill last year. It even managed to move to negative territory around summer this year. However, the price of housing in other regions across the country is rising.
Burnley in Lancashire is the top flipping destination. Of all the homes that were sold within the year, 6% were successfully sold again and at such a rapid rate too. It also remains as the local authority in the country that is cheapest to purchase a home, where the average is pegged at $81,352.
However, the market seemed to be less buoyant nationwide which offers speculators not that many opportunities in terms of quick profit. As a result, many have decided to reduce the amount that they are willing to commit when it comes to buying houses intended for rapid sale. About £4.1 billion worth of houses were successfully sold at least two times in a year in both England and Wales for last year. These figures are down by £200 million from the numbers accumulated for 2016.
A number of speculators have also been discouraged by the fact that the 3% stamp duty surcharge for second and any additional home. However, some of the areas in the north are more resilient. When the property prices are lower, some of the properties that the flippers may have bought will likely fall under the threshold of £125,000 for stamp duty.
Buyers that choose to flip home often want to take advantage of the rapid growth of house prices. Sometimes, they might choose to perform some improvements on the property. Recent data shows that among the most popular flipping destinations include Burnley, County Durham, Redcar and Cleveland, and Middlesbrough.