Flipping 'eck! Burnley tops housing 'flip list'
Burnley has been named the 'flipping' capital of the UK with almost one in 10 homes being sold multiple times in just one year.
The figures, brought to light following analysis of Land Registry data by estate agent Countrywide, show that 8.3% of Burnley properties were flipped in the year to April.
A total of 30,822 homes across England and Wales, worth £5.5bn, were bought and sold during the same period - the highest figures since 2007 when £9.6bn of homes were flipped.
Flipping is the process whereby investors purchase properties with the goal of reselling them for a profit.
Once a popular activity in London, stamp duty hikes have meant that investors are now focusing on other regions.
And with the average house price in Burnley standing at £73,000 – almost 18 times cheaper than the most expensive areas of Chelsea and Kesington in Central London – the town is seen as the ideal place to pick up a bargain.
Estate agent Howard Baker, director at Falcon & Foxglove, said while he did not really consider what was happening true flipping he does think it is good news for the town.
“Back in say 2006, a builder would come along, buy a house in the morning, sell it on in the afternoon and make £1,000. This could happen three or four times in a day and that is what I consider flipping.
“There are a lot of good quality terraced houses in Burnley but once you go inside, some of them are a bit tired.
“They might need redecorating, rewiring or a new bathroom or maybe a new kitchen.
“A lot of first-time buyers, having saved up a sizable deposit, don’t have enough money to carry out this work. They want a house already in excellent condition.
“So a developer will come along, buy the house for a good price, gear it up to a good standard and then sell it on to a first-time buyer who won’t need to spend money on maintenance work for five or 10 years. Everybody is happy.
“I would say this is good way to grow the market and I certainly think it is good news for the town.”