- November 2012 saw cash buyers outstrip mortgage buyers for the first time since this index began
- This trend continued throughout 2013 as cash buyers bought a greater share of properties on the market in four out of the last twelve months
Despite it being more difficult to obtain a mortgage since the 2007 housing market crash, residential properties were still more often bought with a mortgage, rather than with cash. Until the past year, that is!
Cash buyers outstripped mortgage buyers in four out of the past twelve months.
Given that at no other time while this index has been recorded have mortgage sales dipped below cash sales, even once, this is a significant change.
Donna Houguez, Quick Move Now’s market analyst explains:
A rise in the return on investment levels of buy-to-let and a drive to purchase before the market rises again has led to those people with cash reserves available using them to buy property outright.
Looking to the future, I think this is a great index for measuring the success of the Help to Buy scheme as if it is successful, we should see a noticeably larger proportion of properties being bought with mortgages again.
Quick Move Now provides one-of-its-kind data to property analysts to help with assessment of the housing market.
Data calculation: Quick Move Now sells hundreds of properties each year and the method of purchase (cash or mortgage) is recorded for each transaction.