The number of people buying homes without mortgages has decreased by 45% since 2013, new research from SPF Private Clients has revealed.

Cash sales plummeted

The falls are especially prominent in the more expensive areas such as the South East and the biggest in Harlow, Essex, where the percentage of cash sales plummeted from 26.3% in 2013 to 14.5% in 2023.

・Harlow (-44.9%)

・Barking and Dagenham (-41.4%)

・Thurrock (-40.5%)

・Slough (-39.7%)

・Luton (-35.2%)

・Crawley (-30.8%)

・Stevenage (-30.3%)

・Waltham Forest (-28.7%)

In contrast, in Scotland and some of London’s wealthiest areas, such as Kensington and Chelsea (+21.29%), the number of cash purchases increased.

・Inverclyde (+39.4%)

・Hart (+26.1%)

・Solihull (+25.4%)

・Redcar and Cleveland (+21.9%)

・City of Aberdeen (+21.34%)

・Kensington and Chelsea (+21.29%)

・Gateshead (+21%)

・City of London (+20.3%)

SPF Private Clients’ Chief Executive Mark Harris said: “Outside London, there has been a growing trend of cash purchases post-pandemic, perhaps due to the savings some people were able to build up during Covid and choosing to use these rather than opt for more expensive borrowing.

Elevated cost of living

“Cash sales overall have decreased, with ONS data showing 186,000 sales in England last year, down from 254,000 in 2013, which may be down to higher property prices and the elevated cost of living, leaving people with less disposable cash.

“With properties in London and the south-east costing significantly more than elsewhere, they tend to be unaffordable for certain cash buyers such as retirees who prefer to own outright.”

SPF Private Clients (SPF) is a financial services intermediary that offers mortgage advice, wealth management and insurance broking.