The Cash Property Market Trends of the Last Decade
A recent study has shed light on the UK regions experiencing the most significant shifts in cash property purchases over the last decade.
Conducted by mortgage broker SPF.co.uk, the research dives into HM Land Registry data, comparing the percentage of cash purchases in different areas between 2013 and 2023. The results reveal stark contrasts across the country, with some regions seeing a surge in cash transactions, while others witnessed a significant decline.
This comprehensive analysis provides critical insights into how regional economies, property values, and shifting demographics are influencing cash buying patterns.
| Rank | Local authority | Cash sales 2013 | Cash sales 2023 | Percentage – cash sales 2013 | Percentage – cash sales 2023 | Total sales change |
| 1 | Inverclyde | 371 | 591 | 36.0% | 50.1% | 39.4% |
| 2 | Hart | 432 | 379 | 26.6% | 33.5% | 26.1% |
| 3 | Solihull | 881 | 857 | 28.6% | 35.8% | 25.4% |
| 4 | Rushcliffe | 596 | 568 | 29.5% | 36.2% | 22.9% |
| 5 | Redcar and Cleveland | 536 | 682 | 33.4% | 40.7% | 21.9% |
| 6 | City of Aberdeen | 1613 | 1445 | 29.2% | 35.4% | 21.34% |
| 7 | Kensington and Chelsea | 1298 | 855 | 49.1% | 59.5% | 21.29% |
| 8 | Gateshead | 635 | 681 | 26.2% | 31.7% | 21.0% |
| 9 | City of London | 215 | 83 | 49.7% | 59.7% | 20.3% |
| 10 | Na h-Eileanan Siar | 109 | 157 | 44.7% | 53.6% | 20.0% |
The Top 10 Areas with the Biggest Increase in Cash Purchases
1. Inverclyde: A Surprising Leader in Cash Sales
Leading the charge with a staggering 39.4% increase in cash purchases is Inverclyde. Back in 2013, 36% of properties were bought outright, but by 2023, this figure had jumped to 50.1%. Inverclyde’s relatively affordable property prices, with an average of £123,000 according to the Office for National Statistics (ONS), make it a hotspot for buyers looking to avoid mortgages. First-time buyers in the area are paying around £100,000, reflecting a £10,000 increase compared to 2023. The trend highlights how this Scottish region has become increasingly attractive to those who prefer owning their homes outright.
2. Hart, Hampshire: An Affluent Cash Buyer’s Haven
Hart, Hampshire ranks second with a 26.1% rise in the proportion of cash purchases. In 2023, a third (33.5%) of property transactions in the area were completed without borrowing. With an average property price of £467,000—significantly above the national average—Hart’s affluent market attracts those with the financial means to bypass mortgage lenders.
3. Solihull, West Midlands: Growth in a Commuter Hub
Solihull follows closely with a 25.4% jump in cash purchases, rising from 28.6% in 2013 to 35.8% in 2023. The area’s proximity to Birmingham, combined with its more desirable suburban appeal, has drawn cash-rich buyers. The ONS reports average property prices in Solihull at £337,000, 47% higher than those in Birmingham, underlining the area’s premium status.
4. Rushcliffe, Nottinghamshire: Stable Growth in a Quiet Region
Rushcliffe, a peaceful region in Nottinghamshire, has seen a steady rise in cash transactions, with a 22.9% increase over the decade. In 2023, 36.2% of properties were sold outright, compared to 29.5% in 2013. Property prices in Rushcliffe average £346,000, with first-time buyers typically paying around £275,000. This growth suggests that cash buyers are finding value in areas just outside major urban centres.
5. Redcar and Cleveland: A Boost for the North East
The North East region of Redcar and Cleveland rounds off the top five, seeing a 21.9% increase in cash purchases. In 2023, 40.7% of all property sales were conducted in cash, reflecting the area’s appeal to retirees and investors. With average property prices at £158,000 and first-time buyers paying approximately £141,000, Redcar offers affordability alongside a growing property market.
6. Aberdeen: A City on the Rise
Aberdeen witnessed a 21.3% jump in cash sales, further highlighting the growing appeal of Scotland in recent years. With average house prices at £126,000 and first-time buyers paying £105,000, Aberdeen is a key area for those looking to purchase without a mortgage. In 2023 alone, 1,445 properties were bought outright, making it a city to watch in the coming years.
7. Kensington and Chelsea: London’s Elite Stronghold
Perhaps unsurprisingly, Kensington and Chelsea, one of London’s most exclusive boroughs, ranks seventh with a 21.2% increase. In 2023, cash purchases accounted for a striking 59.5% of all property transactions. With an average property price of £1.11 million, this area is dominated by wealthy buyers, often international investors, who prefer to keep their transactions cash-based.
8. Gateshead: Revitalisation in the North East
Another North East hotspot, Gateshead, saw a 21% rise in cash purchases, reflecting the area’s evolving property market. With average property prices currently sitting at £157,000, the region is experiencing a resurgence, attracting buyers who see value in this well-connected area.
9. City of London: High Proportions Despite Decline in Volume
The City of London’s 20.3% increase in the proportion of cash purchases is notable, even though the overall number of properties sold outright has decreased. The financial district’s unique market dynamics mean that 59.7% of properties were bought in cash last year, driven by a blend of wealthy professionals and corporate buyers.
10. Na h-Eileanan Siar: Remote Appeal in the Outer Hebrides
Rounding off the top ten is Na h-Eileanan Siar in the Outer Hebrides, where cash transactions rose by 20%. In 2023, over half (53.6%) of properties were bought outright. The region’s rural and scenic charm makes it a popular choice for buyers seeking a lifestyle change, particularly those who have saved enough to avoid a mortgage.
The Biggest Declines Where Cash Buyers Are Pulling Back
| Rank | Local authority | Cash sales 2013 | Cash sales 2023 | Percentage – cash sales 2013 | Percentage – cash sales 2023 | Total sales change |
| 1 | Harlow | 279 | 120 | 26.3% | 14.5% | -44.9% |
| 2 | Barking and Dagenham | 299 | 99 | 16.7% | 9.8% | -41.4% |
| 3 | Thurrock | 442 | 172 | 21.0% | 12.5% | -40.5% |
| 4 | Slough | 257 | 92 | 18.1% | 10.9% | -39.7% |
| 5 | Luton | 531 | 247 | 25.4% | 16.5% | -35.2% |
| 6 | Crawley | 290 | 142 | 21.1% | 14.6% | -30.8% |
| 7 | Medway | 1040 | 560 | 27.4% | 19.1% | -30.5% |
| 8 | Stevenage | 260 | 130 | 24.7% | 17.2% | -30.3% |
| 9 | Waltham Forest | 591 | 311 | 20.3% | 14.5% | -28.7% |
| 10 | Swindon | 1025 | 558 | 28.8% | 20.7% | -28.4% |
1. Harlow, Essex: The Sharpest Drop
Harlow has seen the steepest fall in cash purchases, with a 44.9% decline between 2013 and 2023. In 2023, only 14.5% of homes were bought outright, down from 26.3% a decade earlier. With average property prices at £309,000, rising costs and economic pressures seem to have pushed potential cash buyers out of the market.
2. Barking and Dagenham: A Decline in Affordable Cash Sales
Barking and Dagenham saw a 41.4% drop in cash sales, making it one of the London boroughs with the smallest proportion of outright purchases. In 2023, only 9.8% of properties were bought in cash. This decline can be linked to rising house prices, which now average £330,000, putting significant pressure on buyers in a traditionally affordable area.
3. Thurrock, Essex: Fewer Buyers, More Mortgages
Thurrock experienced a 40.5% drop in the proportion of cash sales. In 2013, cash transactions made up 21% of sales, but by 2023, this figure had fallen to 12.5%. With property prices averaging £303,000, fewer buyers are opting to purchase outright, possibly reflecting tighter budgets in the commuter belt.
What’s Driving the Trends?
Mark Harris, Chief Executive of SPF.co.uk’s Private Clients, comments: “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.”
London’s property market remains challenging for cash buyers, especially retirees and those seeking value. The capital’s high prices are increasingly driving people to look elsewhere, whether it’s due to remote working options, lifestyle changes, or better value in other regions.
The Changing Face of UK Property
The research illustrates the evolving landscape of the UK property market, reflecting broader economic shifts and regional transformations. From affluent hotspots in Hampshire to revitalised northern regions, cash buyers are shaping the future of property investment in unique ways.
