Big broker reports rise in cash sales, but not everywhere
SPF says overall cash sales may be down, many areas of the UK have seen huge increases in buyers purchasing without a mortgage.
A big rise in the number of cash purchases over the past decade has been revealed by mortgage broker SPF although this includes wild variations depending on which region you look at.
Kensington & Chelsea (59%) and The City of London (59%) have had some of the highest percentages for cash sales since 2013 but Inverclyde in Scotland saw the biggest rise at +39%, which is nearly double Kensington’s growth rate of 21%.
Drop in cash buyers
At the other end of the scale, in Harlow, the number of cash buyers plummeted by 45% to 10% and in Barking and Dagenham they fell 41% to 14.5%.
Almost all of the biggest fallers were in or around London. In Harlow, the number of cash buyers was down by 45% and by 42% in Barking and Dagenham. There were also big falls in Slough (-40%), Luton (-35%), Crawley (-31%), Medway (-30.5%) and Waltham Forest (-29%).
There has been a growing trend of cash purchases post-pandemic.”
Mark Harris (main image), Chief Executive of SPF.co.uk’s Private Clients, says: “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.
“That said, 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 Southeast costing significantly more than elsewhere, they tend to be unaffordable for certain cash buyers such as retirees who prefer to own outright. Economic uncertainties and market fluctuations have also made investors more cautious, driving them away from the capital.
“Additionally, the shift to remote working for many has further encouraged people to live outside major cities, with investors looking at alternative regions.”