- Harlow saw the largest decrease in cash purchases for housing between 2013 and 2023, with a 44.9% decrease
- Alongside Harllow, Barking and Dagenham came in second with a fall of 41.4%, and Thurrock, Essex, in third with a drop of 40.5%.
- On the opposite end, Inverclyde saw the largest increase, with a 39.4% jump in the percentage of properties sold outright.
New research reveals the UK areas with the biggest shifts in cash property purchases.
The study, conducted by UK mortgage broker SPF.co.uk, utilised data from the HM Land Registry to compare the percentage of properties sold as cash sales in every local authority between 2013 and 2023. The focus was on the change in the portion of all sales that were cash purchases within the decade rather than the total number of properties bought in cash. The figures were then calculated for each local authority and ranked according to the regions with the largest drop.
Harlow in Essex was revealed as the area with the most significant decrease in the proportion of cash purchases between the two years, with a 44.9% fall. According to ONS data, Harlow’s average house costs £309,000. In 2013, cash purchases comprised 26.3% of all house properties, but in 2023 this fell to just 14.5%.
In second place is Barking and Dagenham, which saw a 41.4% decline. The London borough had one of the smallest chunks of properties bought in cash at just 9.8% last year, though this figure was already lower than most in 2013 at 16.7%. Just 99 properties were bought in cash last year, and the average price sits at £330,000.
Thurrock, also in Essex, takes third place after seeing the percentage of cash sales drop from 21% in 2013 to 12.5% in 2023, a 40.5% decrease. As it stands, the region saw 172 houses bought outright last year, compared to 442 in 2013, and ONS data reports that the average house costs £303,000.
On the other side of London’s outskirts, Slough comes in fourth with a decrease of 39.7%. Slough saw just 92 properties bought in cash in 2023. As of the most recent estimate from the ONS, house prices are averaging £330,000 at present.
Another area not too far from England’s capital, Luton, takes fifth place with a proportion decrease of 35.2%. Last year, 247 properties were bought outright, representing just 16.5% of all purchases. Now, ONS data reports the average price to be £270,000.
Continuing the Southern trend, Crawley in West Sussex places sixth. The area has seen a decrease of 30.8% in cash sales, representing 14.6% of properties sold last year. ONS data reports the average house price here is £308,000.
Medway in Kent comes next, with a fall of 30.5%. Here, the average house will set buyers back £285,000, and ONS data reports that first-time buyers will likely spend £256,000 on their property. The number of properties bought in cash last year totalled 19.1% of all purchases.
Next, Stevenage in Hertfordshire ranks eighth after a drop of 30.3%. The number of properties sold in cash last year (130) is precisely half that of those sold through the same means a decade previously (260). ONS data reports the average property costs £330,000, and cash purchases totalled 17.2% of all properties bought last year.
The ninth region with the most considerable decrease is the London bourough Waltham Forest, at 28.7% less than 2013. One of the cheaper London boroughs, first-time buyers here paid £452,000 for a property, whilst the average house prices stand at £478,000 according to the ONS.
Rounding off the list is Swindon. The area saw a 28.4% decrease in cash sales, with just 558 properties (20.7% of total sales) sold last year. Presently, the ONS reports an average cost here of £258,000.
At the other end of the study, the area with the largest increase is Inverclyde, with a 39.4% jump in the percentage of properties sold as cash. In 2013, 36% of all homes were bought outright, but this jumped to 50.1% last year. According to the Office for National Statistics (ONS), the average house price here is £123,000, with first-time buyers paying £100,000 on average for their first properties as of April 2024. This latter figure is an increase of £10,000 compared to last year.
Commenting on the findings, Mark Harris, Chief Executive of SPF.co.uk’s Private Clients, said: "Outside London, there has been a growing trend of cash purchases post-pandemic, perhaps due to the savings some people were able to build up during Covid and choosing to use these rather than opt for more expensive borrowing. That said, cash sales overall have decreased, with ONS data showing 186,000 sales in England last year, down from 254,000 in 2013, which may be down to higher property prices and the elevated cost-of-living, leaving people with less disposable cash.
"With properties in London and the south-east costing significantly more than elsewhere, they tend to be unaffordable for certain cash buyers such as retirees who prefer to own outright. Economic uncertainties and market fluctuations have also made investors more cautious, driving them away from the capital. Additionally, the shift to remote working for many has further encouraged people to live outside major cities, with investors looking at alternative regions.”
