The research conducted by UK mortgage broker SPF.co.uk found that Inverclyde saw the largest increase, with a 39.4% rise in outright sales compared to 2013, with 50.1% of all sales in 2023 being cash.  According to the Office for National Statistics (ONS), the average house price here is £123,000, with first-time buyers paying £100,000 on average for their first properties as of April 2024. This latter figure is an increase of £10,000 compared to last year.

The City of London comes in ninth place, with a 20.3% rise. Despite a lower number of properties sold in cash in 2023 compared to 2013, the proportion bought outright sat at 59.7% compared to 2013’s 49.7%. ONS data does not provide information on the average house price, though Rightmove reports a price of £888,000, and Zoopla reports the average cost being £1.07 million for properties sold within the last year.

At the other end of the study, Harlow in Essex was revealed as the area with the most significant decrease in the proportion of cash purchases between the two years, with a 44.9% fall. According to ONS data, Harlow’s average house costs £309,000. In 2013, cash purchases comprised 26.3% of all house properties, but in 2023 this fell to just 14.5%.

Harlow was closely followed by Barking and Dagenham, which saw a 41.4% decline. The London borough had one of the smallest chunks of properties bought in cash at just 9.8% last year, though this figure was already lower than most in 2013 at 16.7%. Just 99 properties were bought in cash last year, and the average price sits at £330,000.

Commenting on the findings SPF.co.uk’s chief executive Mark Harris 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.”

He added: “With properties in London and the south-east costing significantly more than elsewhere, they tend to be unaffordable for certain cash buyers such as retirees who prefer to own outright. Economic uncertainties and market fluctuations have also made investors more cautious, driving them away from the capital. Additionally, the shift to remote working for many has further encouraged people to live outside major cities, with investors looking at alternative regions.”