9 Oct

Cash buyers benefit housing market, says research

Cash buyers benefit housing market, says research

New research conducted by residential property company Hamptons International has revealed that a recent increase of cash buyers is helping to support the recovery of the UK property market.

The figures show that more than a third of the houses bought in England and Wales at the beginning of this year were purchased with cash. This is an 11 per cent increase from 2012.

So far this year, the amount of cash buyers has grown faster than mortgage buyers despite growing mortgage availability.

Hamptons International stated that cash buyers benefit the property market as they add liquidity due to facing fewer financial constraints.

Combined with a recent improvement in mortgage activity, the news could suggest that the recovery in the housing market will continue into next year.

“Contrary to popular belief, much of the recovery in house sales in recent months has been driven by increased cash buyer activity rather than simply increases to mortgage lending,” said Johnny Morris, head of research at Hamptons International.

With the recent launch of the government's Help to Buy scheme, the second half of the year could see an increase in mortgage buyers.ADNFCR-1222-ID-801647673-ADNFCR

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