Mortgage squeeze: Around 32% of home sales in 2023 were for cash, compared with 20% on average between 2017 and 2022
Cash buyers account for a third of sales this year, said property website Zoopla.
Around 32 per cent home sales were for cash, compared with 20 per cent on average between 2017 and 2022. The buyers are often older and wealthier, and less reliant on a mortgage, and tend to buy cheaper properties.
The average home purchase with a mortgage is around £304,000, while the cash average is just under £275,000. Mortgage rates jumped as the Bank of England raised interest rates, but towards the end of 2023 there have been signs of fixed rates easing as inflation slows.
The Bank uses rate rises to quell inflation and the easing could inject fresh confidence into the housing market.
Richard Donnell, executive director at Zoopla, said: ‘The market has been more resilient than many expected.
‘UK housing still looks expensive by historic standards which is why we expect UK house prices to fall a further 2 per cent over 2024 as prices and incomes realign.’
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