So far this year, cash buyers have already accounted for nearly a third of all market activity (32.8%), as higher mortgage rates continue to prove problematic for some
New research suggests that last year cash buyers accounted for the highest percentage of market activity seen in the past decade and, so far in 2024, they have already accounted for a third of all purchases.
The analysis splits between cash homebuyers and mortgage homebuyers in the UK over the last decade to understand what proportion of buyers have historically chosen to pay in cash, and how this compares to the split that has been seen across early 2024.
In 2023 cash buyers accounted for 34.5% of all property transactions. This was the highest proportion seen since 2013 when the data on cash vs. mortgage transactions became available.
In fact, it was only a decade back when the market split attributed to cash buyers came close to that seen last year, sitting at 33.5% in 2013 and 33.3% in 2014.
More recently, the proportion of market activity attributed to cash buyers has been far lower, sitting below 29% between 2019 and 2022.
The analysis, by online agency Yopa, also shows that so far this year, cash buyers have already accounted for nearly a third of all market activity (32.8%), as higher mortgage rates continue to prove problematic for some.
A Yopa spokesperson says: Mortgages have become increasingly more expensive since interest rates started to jump and we are now seeing the result of higher borrowing costs when it comes to buyer trends within the market.
The spokesperson says: Not only is it far tougher for those looking to buy with the aid of a mortgage, but as a result, cash buyers are in a far stronger position within the market making them the first choice for many sellers.
The post Cash buyer activity hit highest level in past decade first appeared on Invest for Property London, Buy Residential property UK.
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