The share of residential property in the UK purchased with cash fell to 28%

The share of residential property in the UK purchased without the involvement of mortgage lending, fell to 28% in the first half of 2019 and that the lowest figure since 2007. This is evidenced by data obtained from the Land registry of the United Kingdom. This is significantly below the peak of 36%, which was achieved in 2009. Over the past two years, the share of residential properties purchased for cash in the UK fell by 5%.

What does this mean? Why are more and more shopping is done with the involvement of mortgage lending? .

First, it is a General reduction in availability. People just can’t find a suitable house or apartment due to limited supply. Also, this decrease in activity “of downsizers” – people who raised money to buy a small housing without credit. Meanwhile, banks are trying to attract buyers interested in conditions on mortgage products and discounts. And of course, decreased the amount of buying for cash investors who shun the British market with its political uncertainty. As it turned out, in London for cash to buy less – and however, London has experienced the strongest decrease of cash capital inflow in 2009 fell 8%, the share of cash purchases and now it is 19%. The largest decline in cash buyers over the past two years experienced the Western part of Central England – up 9% from 2017.

® Angliadom . Helen Entree. 26.11.2019 G.