Research also reveals the areas where the listings are most available
Homebuyers in the UK can save an average of £77,000 by paying in cash rather than relying on a mortgage, the latest research by specialist property development lender Apex Bridging has revealed.
Apex’s analysis focused on current property listings in Great Britain, comparing the average asking price for cash-only transactions with the broader market average.
The overall average asking price for current market listings in Great Britain stands at £255,588, while cash-only listings are priced 30.2% less, with an average price of £178,366, resulting in a substantial saving of £77,222.
Regionally, the most substantial percentage savings were observed in London, where cash buyers enjoy a discount of 32.6%, translating to a significant £159,317 in savings. Other regions with above-average cash buyer savings included: Wales (32.3%), the East of England (32.3%), East Midlands (31.5%), and the South East (30.6%).
Despite the potential for substantial savings, the availability of cash-only listings raises the question of feasibility. Presently, there are 4,924 cash-only listings in the UK property market.
The South East boasts the largest share, with 1,345 listings, constituting 27.3% of the national total. The North West follows with 12.5% or 617 listings, trailed by the South West at 11.7%, East of England at 10.3%, and West Midlands at 9.8%.
Buyers in Scotland and the North East face more significant challenges in finding cash-only properties, as these regions contribute just 0.7% and 1.6% to the national total, respectively.
“Sellers will often request a cash buyer because it tends to lead to a faster transaction by sidestepping the laborious mortgage approval process,” Chris Hodgkinson (pictured), managing director of Apex Bridging, commented. “For the privilege of speed, these sellers are willing to accept less money for their property. As our data shows, they tend to be willing to reduce the price by 30%.
“This news will be cold comfort to the vast majority of homebuyers who have no choice but to take out a mortgage, but for anyone who is wanting to move soon and is fortunate enough to be able to afford a cash purchase, it’s vital insight.
“House prices are on their way up. Come the new year, they might rise slowly, or it might happen quickly, but it’s almost certain that prices won’t be this low again for quite some time. Therefore, you’re advised to act now because if you can get a deal agreed before Christmas, you could be enjoying a very happy new year indeed with double savings – the first from pouncing on lower prices, the second from your cash buyer discount.”
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