Cash buyers outstrip mortgage buyers for the first time
• November 2012 saw cash buyers outstrip mortgage buyers for the first time since this index began• This trend continued throughout 2013 as cash buyers bought a greater share of properties on the market in four out of the last twelve months
At present, it is still harder to secure mortgage funding for a house purchase than it was before the 2007 property market slump. Despite this, consistently more residential properties have been bought with mortgage funding than with cash.
Until now!
A higher percentage of properties were bought by cash buyers than mortgaged buyers in four out of the last twelve months.
This index, which has been recorded since 2010, has never before seen cash sales make up the majority of purchases so this is a noteworthy change.
Donna Houguez, Quick Move Properties' market analyst explains: “A rise in the return on investment levels of buy-to-let and a drive to purchase before the market rises again has led to those people with cash reserves available using them to buy property outright.
Looking to the future, I think this is a great index for measuring the success of the Help to Buy scheme as if it is successful, we should see a noticeably larger proportion of properties being bought with mortgages again.”
Quick Move Properties provides one-of-its-kind data to property analysts to help with assessment of the housing market.
Data calculation: Quick Move Properties sells hundreds of properties each year and the method of purchase (cash or mortgage) is recorded for each transaction.
