Recent reports from Nationwide have revealed that there are now more cash buyers than ever before. Last year, the figures for cash buyers stood at 36%, however this year’s first quarter has seen them leap to 38%. That’s almost 4 out of 10 homes that are sold without talking out a mortgage.
The highest proportion of cash buyers are reportedly in the North East, with 50% of home sales occurring without the need for a mortgage. Close behind, with the second highest proportion, is the South West. Possible reasons for these area’s cash buying trends could be due to the lower house prices in the North East, and the high percentage of older home owners in the South West who may already own their homes and consequently have no need for a mortgage when they move.
The greater reluctance to give mortgages by the banks is an answer to why cash buying has become more prominent across the country. According to Nationwide’s own reports, the proportion of cash purchases leapt after the financial crisis.
However figures from the Bank of England show that the incline in cash purchasing is not set to continue, as April saw the number of mortgage approvals rise to a 14 month high.
While house prices rose by 4.6% up from last May, the growth does seem to be slowing, compared with April’s 5.2% increase from the previous year. Since this April, house prices have risen by 0.3%, making the average property price in the UK £195,166.
Whether you’re a prospective cash buyer or mortgage owner, and are looking to buy, sell or rent in the Devon area, Autograph Estate Agents are here to help. Please don’t hesitate to get in contact with one of our dedicated team.