New research has highlighted major changes in the proportion of cash property sales across the UK, with certain regions experiencing dramatic shifts over the past decade. The study, conducted by UK mortgage broker SPF.co.uk, used data from HM Land Registry to analyse cash property sales from 2013 to 2023, ranking local authorities by the largest changes in the percentage of homes bought outright.
Inverclyde, Scotland, topped the list with a remarkable 39.4% rise in cash property purchases. In 2013, 36% of homes in the area were bought outright, but by 2023 this figure had soared to 50.1%. This surge in cash sales comes despite Inverclyde’s relatively affordable house prices, with the average home costing £123,000, according to the Office for National Statistics (ONS).
Hart in Hampshire followed with a 26.1% rise in the proportion of homes bought outright. Last year, cash buyers purchased 33.5% of all properties in the area, where the average house price is £467,000, well above the national average of £285,000. Solihull, in the West Midlands, saw a similar trend with a 25.4% increase, with cash sales making up 35.8% of all property transactions in 2023.
Rushcliffe in Nottinghamshire and Redcar and Cleveland in the North East also saw significant increases, with rises of 22.9% and 21.9%, respectively. While house prices in Rushcliffe averaged £346,000, in Redcar and Cleveland, the typical home costs a much more affordable £158,000.
At the other end of the scale, the study revealed Harlow in Essex had the most significant drop in cash sales, with a 44.9% decline between 2013 and 2023. In 2013, cash buyers made up 26.3% of the market in Harlow, but this fell to just 14.5% last year. Barking and Dagenham saw a 41.4% decrease in cash purchases, while Thurrock experienced a 40.5% drop.
Other regions showing notable decreases included Slough, with a 39.7% fall, and Luton, which saw a 35.2% reduction in the percentage of cash buyers. Crawley, Medway, Stevenage, and Waltham Forest also featured in the top ten areas with the largest declines.
Mark Harris, Chief Executive of SPF.co.uk, commented on the findings, suggesting that the pandemic has had a significant impact on cash sales. “There has been a growing trend of cash purchases outside London, potentially due to savings accumulated during Covid-19. However, the overall number of cash sales has declined due to rising house prices and higher living costs, leaving buyers with less disposable income.”
The study highlights those economic pressures, rising property prices, and the shift towards remote working have contributed to regional variations in the property market, particularly affecting the ability of buyers to purchase homes outright.