As the UK’s property values continue to climb, developers and homeowners are buying, renovating and selling homes to make a quick and substantial profit. ‘Flipping’ is particularly apparent in London where prices have skyrocketed in recent years. With the right research, purchase price and renovation plans, the value of a property can grow quickly. We've found some examples on the market now.
With the right research, purchase price and renovation plans, the value of a property can grow quickly
Spokesperson for Plentific, Stephen Jury, said: “Flipping has become more common in recent years thanks to the rapid growth of house prices, especially in and around London. However, there has been a dramatic demand shift in recent months, so it is no longer as easy to get a quick sale as we approach 2017. Despite this, we’ve found four current examples of homes which have been bought, received some TLC, and then returned back onto the market with a substantial increase to their price tag.’
Average value increase over past year: £42,725
Example property: 5 Bedroom End of Terrace House, Lanvanor Road
Sold in January 2016 for: £575,000
Stamp duty cost on purchase: £18,750
Price now: £900,000
Difference (ex. Duty & Renovations): £325,000
This property’s asking price now sits at £900,000, having been sold at auction for £575,000 in January this year. That’s an increase of £325,000 in 10 months alone! Whilst this appears to be a quick flip, on closer examination this property has been completely refurbished in a small space of time. Two bedrooms have been added via a loft conversion, as well as a kitchen extension. The interior also appears clean, bright and has been finished to a professional standard.
Average value increase over past year: £44,834
Example property: 3 Bedroom Apartment, Marsham Street
Sold in October 2015 for: £752,500
Stamp duty cost on purchase: £27,625
Price now: £995,000
Difference (ex. Duty & Renovations): £242,500
This apartment stands out with its white and bright interior. This not only makes the rooms feel bigger, which is always a necessity when space is scarce, but also makes the property appear clean and fresh. The kitchen and bathroom also look newly installed and are in great condition, which really draws in buyers. With more than a £200,000 increase in value over the last year alone, this is a prime example for how to renovate and upsell within a short space of time.
Average value increase over past year: £16,223
Example property: 2 Bedroom Flat, Speldhurst Road
Sold in August 2015 for: £675,000
Stamp duty cost on purchase: £23,750
Price now: £750,000
Difference (ex. Duty & Renovations): £75,000
Having seen a price increase of £75,000 in just over a year, this ground floor flat makes efficient use of all space provided. Looking closely at the estate agent’s pictures for this property, every room appears to be in ‘new’ condition, including what looks like a newly installed kitchen and bathroom. Whilst £75,000 is a useful sum of money, it can’t hurt to be aware of additional costs during this process. The £23,750 stamp duty price, as well as renovation costs and a year’s worth of workload on top of that, will reduce the overall profit.
Average value increase over past year: £75,706
Example property: 2 Bedroom Apartment, Parliament Hill
Sold in November 2015 for: £550,000
Stamp duty cost on purchase: £17,500
Price now: £800,000
Difference (ex. Duty & Renovations): £250,000
The price of this property has risen by £250,000 over the past year; an increase of almost half of its original value! The home is presented unfurnished which emphasises the space and allows the buyer to decorate as they choose. It appears to have been completed to a high standard with no obvious signs of wear in the kitchen or bathroom and the garden looks to be well-kept with an attractive finish. This demonstrates how a few small jobs can really make a difference!
Katie is constantly browsing the internet to keep up-to-date with the latest property news. A huge fan of tea and chocolate, plus has a love for period homes.