Downward trend in the proportion of homes bought with cash according to Hamptons International

October 22, 2018

New research published  by Hamptons International shows that in H1 2018, the proportion of homes in England and Wales bought with cash fell to 29.6%, the lowest level since the company’s records began in H1 2007, cash purchases peaked in H2 2008, when 37.8% of homes were bought without a mortgage.

Hamptons International reveals that the downward trend in the proportion of homes bought with cash reflects a drop off in investor and developer purchases.

Hamptons International Research using Countrywide data, shows that in H1 2018 investors accounted for one in four (24%) of cash purchases, down from one in three (32%) in H1 2007 and peaked at 43% in H1 2008.  The same goes for developers who purchased just 2% of the homes bought with cash in H1 2018, down from 6% in H1 2007.

Commenting Aneisha Beveridge, Head of Research, Hamptons International, said:

“The proportion of homes purchased with cash has fallen to the lowest level on record.  Today less than a third of homes are bought with cash.  Housing affordability has a role to play in the decline, as does the drop off in investor activity.

“Cash buyers have historically tended to be older generations downsizing by cashing in on equity gained from past house price growth.  But recent slower price growth and higher stamp duty bills on new purchases have contributed to fewer downsizers, and as a result, fewer cash buyers.

“But not all cash buyers are older generations looking to downsize.  Shifting investor sentiment has also contributed to the fall in cash buyers.  Increased taxation for landlords and the prospect of weaker future gains has meant that investors accounted for just one in four cash buyers (24%) in H1 2018, down from one in three (32%) in H1 2007.”

Read the Hamptons International research report in full click here.

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

Rightmove logo
Breaking News

Back-to-school buyer bounce outpaces typical September uplift

New real-time analysis from the UK’s largest property platform Rightmove reveals that buyer demand received a stronger than usual back-to-school boost during the first week of September Buyer demand increased by 5% during the opening week of the month, significantly higher than the average increase of 0.4% seen over the same period during the last…
Read More →
Letting Agent Talk

8,500 tenanted homes currently on the market

8,500 tenanted homes currently up for sale as TLP highlights importance of clean client money handovers   More than an estimated 8,500 homes are currently being marketed for sale with tenants in situ across England, according to the latest analysis by The Letting Partnership, presenting landlords with the opportunity to acquire an investment generating rental…
Read More →
Estate Agent Talk

Which property types take the longest time to buy?

From complex flats and shared ownership homes to new builds and unusual titles, Lyons Bowe reveals which properties can create the biggest conveyancing workload   The latest insight from Lyons Bowe has revealed which types of property are most likely to require the largest and most complex conveyancing workload, potentially adding more stages to the journey…
Read More →
Commercial Agent Talk

Building Site Accidents and Compensation: A Guide for Injured Workers

One mistake, one faulty piece of equipment and an unsafe working setup could cause a construction laborer much more than just aches and pains. One injury can result in medical costs, showing up on working days, reduced income and a path to long recovery. Under certain circumstances, the workers may be entitled to get compensation…
Read More →
Estate Agent Talk

First-Time Buyers: Why 4–5 Houses is the Sweet Spot

House hunting before the stress kicks in: Four to five houses is the sweet spot for first-time buyers Just 20% of us feel excited on a first property viewing, rising to 47% by viewings 4 to 5 There’s a U shape trajectory of excitement when it comes to the viewing process However, there is a…
Read More →
Breaking News

Two in five mortgage holders switched banks for a better mortgage deal

Of those who have a mortgage and switched banks, 41% did so to get a better mortgage rate deal and 30% did it to receive an incentive related to their mortgage Only 15% of people moving home switched their bank account during the move, while far more switched broadband (46%), energy (38%), and mobile phones…
Read More →