In the UK an increasing number of buyers paying cash purchase

More and more property buyers in the UK is calculated in cash. These buyers significantly affect the recovery of the property market, providing a much greater impact than buyers taking a mortgage loan. In the first half of this year, more than a third – 35% of transactions for the purchase of property in England and Wales was paid by the buyers for cash. That is, the number of cash buyers increased by 11% compared to the same period in 2012. The number of buyers buying a property in England and Wales for cash is at its peak since 2008.

However, improving the availability of mortgage lending and confidence in the property market.

20,000 more transactions for the sale of real estate were concluded in the first half of 2013 compared to the same period in 2012. Of which 70% of transactions were paid in cash and the remaining transactions – based mortgage.

This situation has arisen contrary to popular belief that the availability of mortgage lending – the only reason for the improvement in the property market in the UK. No doubt, the availability of mortgage lending has helped to improve the mood of the UK property market and increase liquidity in the market, however, the fact that the buyers for cash ahead of buyers for a mortgage, says a really good natural market activity, not stimulated by the actions of the authorities.

The large number of customers concentrated in the South-West of England – 39%, over the last 12 months, 33 % – in England and Wales. On average in London, the number of such buyers is small – only 24%, however, among buyers of luxury properties in Central London, the number of buyers “for cash” is up to 60%. But we must also consider the price range. If the South-West of England the average cost of residential property is £173000, in London the average price is £386000, and in Central London the cost of the project of elite residential real estate averages £935000 pounds.

Many property buyers “for cash” plan to use the capital that they will gain from the sale of its unused real estate. In the South-West of England – the highest level of real estate ownership and the large number of people who became age groups.

On the other hand in London – the high cost of real estate in the UK, in London, an excellent level of banking services, more affordable than anywhere else in the UK.

® Maxim Savitsky. 09.10.2013