Cash Buyers On Rise In Home Ownership

Cash is king when it comes to house purchases as the market for mortgages becomes harder and harder to access.

There has been a huge rise in the proportion of homebuyers paying for their new homes in cash.

According to figures compiled by the Council of Mortgage Lenders (CML) in January 2011, nearly 40% of buyers did not need a loan to buy their home - with cash buyers more than doubled since 2005, when the records began.

Robert Bartlett, the Chief Executive of Chesterton Humberts estate agency, told the BBC that the number of cash deals being done in the housing market is historically high.

"In some areas of London, it can be up to 80%," he added, noting that the people driving this trend are "typically the Saga generation" who are downsizing and pocketing a profit from previous housing booms.

Meanwhile, other cash buyers are investing in property because they see it as one of the few investments that they can make money from and use at the same time.


Related UK National News Stories
Click here for the latest headlines.

28 July 2006
RBS to provide 'free' ATMs for poor
Royal Bank of Scotland is to provide an initial 300 free-to-use cash machines in some of the Britain's poorest areas. The bank is currently seeking the advice and support from MPs, credit unions and community leaders, to ensure that the most appropriate locations in the UK benefit.
11 October 2004
Audit slams 80% of new build homes as 'mediocre'
Four-out-of-five buyers of new build houses and flats have to settle for "mediocre properties", according to the Commission for Architecture and the Built Environment (Cabe).
12 June 2013
New Ofgem Requirements To Shake-Up UK Energy Market
Energy regulator Ofgem has announced new measures to shake-up the UK energy market. In an effort to “break the stranglehold of the big six energy suppliers", large suppliers and generators will be required to trade fairly with smaller players or face cash penalties. The six largest companies, Centrica (British Gas), E.
15 April 2009
House Purchase Lending Edges Up And Remortgaging Declines
The number of house purchase loans ticked up in February, according to new data from the Council of Mortgage Lenders (CML). There were 24,300 house purchase loans worth £3.1 billion, compared with 23,400 loans worth £3.1 billion in January - a 4% increase.
03 February 2004
'Strong support' shown for home buyers' 'pack' proposal
A research summary report published today has revealed "strong support" among home buyers and sellers for the Home Condition Report, which forms part of the government's Home Information Pack proposals. The proposals have been created to address the problems associated with selling homes in England and Wales.