According to new data analysis from estate agent firm Yopa, cash buyers have accounted for a third of all purchases so far in 2024.
The analysis looked the split between mortgage homebuyers and cash homebuyers in the UK over the past 10 years to see how many buyers chose to pay in cash, and how this historical data compares to the first two months of this year.
The data revealed that cash buyers accounted for 34.5% of all property transactions – the highest proportion since 2013, when mortgage versus cash transaction data first became available.
Comparatively, the number stood at 33.5% in 2013 and 33.3% in 2014.
The proportion of market activity attributed to cash buyers has been far lower in recent years, with the number not climbing beyond 29% between 2019 to 2022.
Yopa’s analysis also revealed that cash buyers have accounted for almost a third of all market activity (32.8%) in 2024. This is likely due to higher mortgage rates causing problems for those hoping to use a mortgage to climb the property ladder.
CEO of Yopa, Verona Frankish, said: “Mortgages have become increasingly more expensive since interest rates started to climb and we’re now seeing the result of higher borrowing costs when it comes to buyer trends within the market.
"Not only is it far tougher for those looking to purchase with the aid of a mortgage, but as a result, cash buyers are in a far stronger position within the market making them the first choice for many sellers.
"The good news is that there is light at the end of the tunnel and the broad expectation is that interest rates will start to ease this year. As they do, we expect the market will return to a greater degree of normality when it comes to the cash versus mortgage buyer balance.”
