Escape to the country – downsizers drive rise in cash sales in retirement hot spots
A new study has identified those parts of the country where property sales are most likely to go to a cash buyer.
Zoopla expert predicts house prices will fall by 22% by 2026
Downsizers escaping to the country and wealthy foreigners looking a London base are driving a cash buyer boom.
A new study has identified those parts of the country where property sales are most likely to go to a cash buyer.
Over the last 12 months, cash buyers have accounted for 208,316 sales across Britain, almost a third of total market activity (32 percent).
The South West is the region home to the largest proportion of cash buyer market activity at 37.9 percent, which has created problems for locals pushed out of the market.
By contrast the lowest proportion of cash buyers was for London – with its high prices – at 23.9 percent.
A deep dive into the data by experts at My Home Conveyancing has revealed specific council areas where cash buyer numbers are at their highest.
North Norfolk ranks as the nation’s number one cash buyer hotspot, where over the last 12 months a huge 62.2 percent of all homes sold have been to those who did not need a mortgage.
Two bed cottages in the popular seaside town of Cromer sell for around £270,000, while historic Grade II listed properties are available for £400,000.
Second place goes to the East Lindsey council district, in Lincolnshire, which includes Skegness, at 56.8 percent.
Argyll and Bute, on the west coast of Scotland, ranks third at 56.7 percent. There it is possible to buy a five bed detached property in Dunoon for less than £430,000.
Elsewhere outside the capital there are no less than nine other areas where more than 50 percent homes have been snapped up by cash buyers over the past 12 months.
These include East Devon (53.2 percent), Rother (53.1 percent), Isle of Wight (52.8 percent), South Hams (51.3 percent), Dumfries and Galloway (50.8 percent), Dorset (50.5 percent), Scottish Borders (50.4 percent), Chichester (50.3 percent) and Fylde (50.2 percent).
Three of the nation’s top cash buyer hotspots are found within prime central London, where high-end buyers handover millions in cash when purchasing .
These are led by Kensington and Chelsea (58 percent), the City of London (56.2 percent) and the City of Westminster (51.5 percent).
Director of My Home Move Conveyancing, Alistair Singer, said sellers who find a cash buyer can benefit because the process is normally far more speedy than where sellers need a mortgage.
He said: “These factors have become increasingly attractive since interest rates started to climb, however, it really is the luck of the draw when it comes to securing a cash buyer. Although your chances are far higher in some areas compared to others - as our research shows.
“Fear not, though, there are still a number of things within your control that will help you sell quicker, even without the benefit of a cash buyer.
“Choosing the right estate agent and conveyancer is key in this respect, and this choice should be based on quality of service provided, their track record and how specialist they are, not simply the one offering the cheapest fees, so make sure you check out their Trustpilot scores.
“Being well prepared, understanding your home’s unique features, and being proactive throughout the process also makes a big difference.
“Having all the required paperwork and information on your home readily available will ensure you’re legally prepared and will help cut down the time it takes you to transact, enabling you to sell your home with confidence.”