Cash Buyers Account For 4 In 10 London Property Transactions
With the number of properties sold rising each year, we are starting to see that more and more of those sales are by cash buyers. What this means is that older purchasers, who have built their housing wealth over the past decade, have been able to invest in properties that more or less suit their needs.
The number of these sales to cash buyers reached 420,000 in the year to the end of March, which makes up nearly two fifths of home sales in England and Wales. Whilst this trend is present across all regions of England, it was specifically prevalent in London where the share of those making cash purchases when from 27% in the first quarter of 2013 to 38% in the same time as 2015.
This rise in cash purchases has been even more prevalent at the top end of the market, with Savills providing figures that show that more than half of the homes sold for a value more the £1m were purchased without debt .
These figures are evidence that there is the potential to purchase property without falling into debt. Whilst the overall factor for getting to this end is time, it is hope that one day there is potential to achieve that outcome.