Cash buyers account for one-third of property transactions

The number of people paying in cash for properties in England and Wales has increased, according to new analysis published by the Council of Mortgage Lenders (CML). The total volume of cash buyers rose to around one-third of transactions, fuelled largely by older purchasers who are selling off their large homes for significantly more money than they paid for them. In turn, they are acquiring smaller units with cash, leaving them mortgage-free. The research by CML shows that in the region of three-quarters of cash purchases were funded by the sale of another property. Most of the rest are paid for from savings or an inheritance. Cash buying increased across many parts of England and Wales, with the average value of a cash transaction almost identical to one funded by a mortgage. The largest proportion of purchases funded by cash is in the South West, while the smallest proportion is in London, reflecting the fact that property prices in the capital are significantly higher than the national average. London and the South West were the only parts of the country where the average property acquired for cash is more expensive than one funded by a mortgage. Within the capital, there…