Cash buyers quids in vs mortgage counterparts due to Brexit uncertainty

February 19, 2020

The latest research by estate agent comparison site, GetAgent.co.uk, has found that cash is still king when it comes to securing the best price on a property.

GetAgent.co.uk looked at the average price paid by cash buyers over the last 12 months and how this compared to that paid by buyers funded via a mortgage to see what the difference was and how this varied regionally across the UK.

The data shows that across the UK the current average price paid by cash buyers over the last year is £220,100, -9% cheaper than the average price paid by buyers with a mortgage (£240,758).

This gap is the highest in the North East and North West, where properties bought with cash go for -12% less, while London is the only region where cash will cost you more, 6% more than the average price paid by a mortgage buyer.

Falkirk is home to the best cash bargains in Britain with cash sales seeing a -24% discount compared to mortgage funded purchases. North Lanarkshire and Renfrewshire (-21%) are also home to some of the biggest differences, with Hartlepool seeing the biggest cash discount in England at (-21%).

The Isle of Anglesey is home to the highest cash property price when compared to mortgage prices coming in 11% higher, with the Western Isles and Breckland also amongst the highest prices paid when comparing cash to mortgage.

In London, Sutton is the best borough for a cash buyer with an average price of £346,516 compared to £382,100 – a -9% reduction.

Redbridge, Enfield. Bexley and Harrow also rank high for cash discounts, while Merton is home to an average cash property price some 7% higher than the average mortgage purchase price, along with Westminster.

Founder and CEO of GetAgent.co.uk, Colby Short, commented: 

“Cash is always king when it comes to pretty much any transaction and this doesn’t change just because you’re buying a house. In fact, it becomes even more pertinent.

Cash buyers are preferable to many sellers because they provide a much simpler transaction with fewer hoops to jump through and often come without a complicated chain. The flip side of this convenience is that cash buyers have a far stronger position when it comes to negotiations and often sellers will accept a more sizeable reduction for the speed and convenience of a cash sale.

While this is nothing new, it has become more prevalent in recent times due to a few factors.

Brexit uncertainty over the last year has left many on the fence and so those that are looking to sell have had to do so with a lower price expectation due to a dwindling level of buyer interest. Therefore, finding the golden ticket of a cash buyer with honest intentions in a market slowdown has prompted an even greater tendency to sell with a greater cash discount in order to get a sale over the line.

At the other end of the transaction scale, the continued affordability of borrowing money due to low interest rates has seen many aspirational buyers commit to a greater sum than they may have otherwise.

Of course, the cat and mouse game of a lower bid during the offer stage happens regardless of how a buyer may be funded, but with mortgage buyers already starting at a higher price point in terms of the sum they’ve been approved for, the final price paid has been greater than it may have been in different circumstances.”

Average House Prices – Cash vs Mortgage in the last 12 months nationally
Location
Cash Ave Price
Mortgage Ave Price
Difference – cash vs mortgage (%)
England
£232,727
£254,702
-9%
Wales
£159,200
£166,536
-4%
Scotland
£139,782
£157,144
-11%
Great Britain
£220,100
£240,758
-9%
Average House Prices – Cash vs Mortgage in the last 12 months regionally
Location
Cash Ave Price
Mortgage Ave Price
Difference – cash vs mortgage (%)
North East
£118,204
£135,005
-12%
North West
£151,773
£171,553
-12%
East of England
£276,380
£297,925
-7%
South East
£308,459
£329,475
-6%
West Midlands Region
£190,330
£202,509
-6%
Yorkshire and The Humber
£157,170
£166,653
-6%
East Midlands
£186,799
£196,680
-5%
South West
£253,595
£258,484
-2%
London
£494,048
£465,291
6%
Biggest Cash discount vs Mortgage in the last 12 months by area
Location
Cash Ave Price
Mortgage Ave Price
Difference – cash vs mortgage (%)
Falkirk
£102,185
£134,573
-24%
North Lanarkshire
£90,064
£114,092
-21%
Renfrewshire
£103,098
£129,729
-21%
Hartlepool
£94,472
£118,384
-20%
East Renfrewshire
£194,172
£240,863
-19%
East Dunbartonshire
£182,334
£224,139
-19%
Preston
£111,857
£135,453
-17%
Middlesbrough
£98,999
£119,675
-17%
Burnley
£75,983
£91,579
-17%
St Helens
£115,722
£138,587
-16%
South Lanarkshire
£114,184
£134,220
-15%
Warrington
£173,576
£203,534
-15%
City of Dundee
£110,831
£129,897
-15%
Solihull
£254,089
£297,425
-15%
Warwick
£278,412
£324,713
-14%
South Tyneside
£119,992
£139,637
-14%
Newport
£165,475
£192,541
-14%
City of Glasgow
£120,113
£139,695
-14%
East Ayrshire
£86,753
£100,678
-14%
Darlington
£118,361
£137,050
-14%
North Ayrshire
£98,771
£113,986
-13%
Sefton
£153,540
£176,946
-13%
West Dunbartonshire
£94,531
£108,788
-13%
West Lothian
£145,616
£167,433
-13%
Liverpool
£122,448
£140,719
-13%
Biggest Cash increase vs Mortgage in the last 12 months by area
Location
Cash Ave Price
Mortgage Ave Price
Difference – cash vs mortgage (%)
Isle of Anglesey
£187,624
£169,726
11%
Na h-Eileanan Siar
£124,948
£113,682
10%
Breckland
£235,656
£217,415
8%
Shetland Islands
£167,983
£155,261
8%
Powys
£194,468
£179,878
8%
Torridge
£241,400
£224,908
7%
Herefordshire
£244,863
£229,297
7%
Merton
£536,473
£502,970
7%
City of Westminster
£987,828
£926,203
7%
Boston
£161,596
£151,769
6%
North Devon
£253,846
£238,638
6%
Ceredigion
£190,535
£179,818
6%
North Norfolk
£261,432
£246,941
6%
North Dorset
£267,410
£253,102
6%
Richmondshire
£216,320
£205,870
5%
South Somerset
£235,334
£224,159
5%
Isle of Wight
£223,934
£213,683
5%
Forest Heath
£226,805
£216,465
5%
Ashford
£305,564
£292,157
5%
South Holland
£193,814
£185,777
4%
Islington
£649,589
£624,748
4%
Eden
£202,558
£194,814
4%
Carmarthenshire
£150,654
£145,101
4%
Fenland
£192,993
£185,891
4%
Babergh
£292,594
£282,279
4%
Average House Prices – Cash vs Mortgage in the last 12 months in London
Location
Cash Ave Price
Mortgage Ave Price
Difference – cash vs mortgage (%)
Sutton
£346,516
£382,100
-9%
Redbridge
£392,932
£420,773
-7%
Enfield
£375,037
£398,963
-6%
Bexley
£323,356
£342,604
-6%
Harrow
£432,749
£455,916
-5%
Hillingdon
£392,937
£411,128
-4%
Kingston upon Thames
£472,204
£493,198
-4%
Greenwich
£377,913
£394,101
-4%
Bromley
£427,158
£441,345
-3%
Croydon
£355,617
£367,236
-3%
Havering
£356,536
£367,848
-3%
Camden
£829,016
£854,702
-3%
Barnet
£511,798
£525,628
-3%
Lewisham
£400,577
£411,344
-3%
Richmond upon Thames
£640,203
£656,845
-3%
Haringey
£540,425
£550,201
-2%
Barking and Dagenham
£296,650
£301,062
-1%
Lambeth
£504,599
£508,825
-1%
Brent
£479,871
£483,288
-1%
Kensington And Chelsea
£1,261,638
£1,264,513
0%
Hammersmith and Fulham
£723,700
£725,180
0%
Wandsworth
£585,464
£586,243
0%
City of London
£786,587
£787,356
0%
Hackney
£559,199
£558,878
0%
Hounslow
£402,878
£400,622
1%
Southwark
£501,744
£495,945
1%
Waltham Forest
£437,310
£431,306
1%
Ealing
£480,944
£473,899
1%
Tower Hamlets
£441,058
£433,981
2%
Newham
£373,026
£359,891
4%
Islington
£649,589
£624,748
4%
City of Westminster
£987,828
£926,203
7%
Merton
£536,473
£502,970
7%

Properganda PR

National and local media coverage for property businesses. Journo quotes delivered in minutes.

You May Also Enjoy

Love or Hate Rightmove
Breaking News

Rightmove’s weekly mortgage tracker – 02/05/24

Matt Smith, Rightmove’s mortgage expert said: “Next week’s Bank of England meeting will be quite key for setting the tone for mortgage rates leading into summer. An uneasy few weeks for the world economy has meant that there is still a lot of uncertainty around when we might see the first interest rate cut – and…
Read More →
Estate Agent Talk

Powering Up Your Brokerage: How Real Estate Apps are Transforming the Industry

The real estate industry once literally hand-to-hand with traditional printed flyers and face-to-face meetings became digital-friendly after the revolution of technology. Among the key drivers of this transformation is the real estate app through which brokerages redefine the role they perform and the way they interact with clients. Streamlined Workflows and Increased Efficiency Gone are…
Read More →
Breaking News

Breaking Property News – 02/05/24

Daily bite-sized proptech and property news in partnership with Proptech-X. Is Zoopla holding back the housing market? Maybe it is me! and definitely me and my dog Zara do not think like most people, but – each month in the UK just 100,000 properties complete (exchange) and in the past decade this has been the…
Read More →
Breaking News

Breaking Property News – 01/05/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Fine & Country relaunches Masterclass Series for 2024 to support network in winning more business Set to take place in both London and Huddersfield, Fine & Country will be hosting informative and engaging Masterclass sessions again this year, sharing insight from property experts on…
Read More →
Estate Agent Talk

A Guide To Moving To The UK

Are you considering moving to the UK, perhaps you are relocating for work or returning after some time as an expat elsewhere. Whatever the reason, to help you begin your journey smoothly, we have compiled all the relevant information on how to relocate to the UK. This guide to moving to the UK will cover…
Read More →
Breaking News

Breaking Property News – 30/04/24

Daily bite-sized proptech and property news in partnership with Proptech-X.   Will Yardi’s multi-million gamble on WeWork the former £37Bn Unicorn pay off? The word is that Adam Neumann the enfante terrible and former co-founder is unlikely to be the new owner of WeWork as it emerges out of the gloom of its present bankrupt…
Read More →