Cash buyers accounted for 34.5% of all property transactions in 2023, according to estate agents Yopa.
This is the highest proportion seen since 2013 when the data on cash versus mortgage transactions became available.
Yopa analysed the split between cash homebuyers and mortgage homebuyers in the UK over the past decade to understand what proportion of buyers have historically chosen to pay in cash, and how this compares to the split that has been seen across the first two months of 2024.
A decade ago, the market split attributed to cash buyers was close to that seen last year, sitting at 33.5% in 2013 and 33.3% in 2014. More recently, the proportion of market activity attributed to cash buyers has been far lower, sitting below 29% between 2019 to 2022, according to the data.
The analysis by Yopa also shows that so far this year, cash buyers have already accounted for almost a third (32.8%) of all market activity as higher mortgage rates continue to prove problematic for those looking to climb the ladder with the aid of a mortgage.
Yopa CEO Verona Frankish said: “Mortgages have become increasingly more expensive since interest rates started to climb and we’re now seeing the result of higher borrowing costs when it comes to buyer trends within the market.
“Not only is it far tougher for those looking to purchase with the aid of a mortgage, but as a result, cash buyers are in a far stronger position within the market making them the first choice for many sellers.
“The good news is that there is light at the end of the tunnel and the broad expectation is that interest rates will start to ease this year. As they do, we expect the market will return to a greater degree of normality when it comes to the cash versus mortgage buyer balance.”
