Cash buyers broaden their horizons on their search for a home
Hamptons’ latest (Jan 2017) Market Insight emphasises the rate of decline in the number of cash-only transactions compared to the previous year, continuing a general trend of a reduction in cash buyers in the market since 2014.
Whilst Hamptons admit that this is broadly in line with the fall in overall housing transactions over the same period, what the national figures hide is that the more expensive regions have seen the largest decline in cash buyers, with a fall of 13% across the South East.
Hamptons conclude that ‘As prices have grown, the ability for many to be able to buy homes debt-free has reduced, as has the yield on any property bought to rent out – especially with the additional effects of Stamp Duty.
This has served to change the behaviour of cash buyers, who are increasingly looking for value for money.’