That’s according to a new study by mortgage broker SPF.co.uk, which highlighted the UK regions experiencing the most significant changes in cash property sales over the past decade, using data from HM Land Registry.
Inverclyde saw more than half (50.1%) of all homes purchased outright last year, compared to just 36% in 2013. With an average house price of £123,000, it remains an affordable area for first-time buyers, spurring a boom in cash transactions.
Hart in Hampshire took second place, with a 26.1% rise in cash sales to account for 33.5% of properties in 2023, compared to 26.6% a decade earlier. The area is expensive, with the average property costing £467,000 – 63% above the national average.
In third place is Solihull in the West Midlands, which witnessed a 25.4% increase in cash sales.
The rest of the top five is made up of Rushcliffe (near Nottingham), Redcar and Cleveland.
Fall in cash sales
At the other end of the spectrum, Harlow in Essex experienced the most significant drop in cash property sales, with a 44.9% decline between 2013 and 2023. Just 10 years ago, cash purchases made up 26.3% of total sales in the town, but this has fallen to just 14.5% as a result of economic pressures, high property prices, and rising mortgage rates.
Barking and Dagenham came second, with a 41.4% drop in cash sales, and Thurrock was third, with a 40.5% fall.
Rounding out the five regions to see the biggest fall in cash sales are Slough and Luton.
Mark Harris, CEO of SPF.co.uk, 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.”
