The proportion of homebuyers choosing to pay in cash has hit a 10-year high1, analysis has found.
In 2023, cash buyers were responsible for a third (34.5%) of all property transactions – the highest percentage seen since data became available in 2013. This trend carried on into this year, as 32.8% of market activity was attributed to cash buyers in the first two months of 2024. This is a higher proportion than we have seen in recent years, with cash buyers accounting for less than 29% of market activity during 2019–2022. The increase is likely to be due to the higher cost of borrowing, which continues to put a strain on affordability for those purchasing a home with a mortgage.
Verona Frankish, CEO of online estate agents Yopa, commented, “Not only is it far tougher for those looking to purchase 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.”
It is likely that the balance of cash and mortgage buyers will be redressed when mortgage affordability improves.
1Yopa, 2024
As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.
