Cash buyers abandon London in search of a home

Cash buyers abandon London in search of a home

New data from Hamptons International has shown that the proportion of cash buyers from London purchasing a home in the capital has fallen by 14% since 2010.

According to the report, in Q3 2016, 42% of London cash buyers bought a home in the capital, falling from 56% in 2010 and 43% in 2015. Nationally, 78% of cash buyers in Q3 2016 bought in the same region they came from – a 4% fall from 2010.
 
With less than half of Londoners buying with cash choosing to buy in the city, it makes London stand out from the rest of the country.  Nationally 78% of cash buyers bought in the region they came from.  In the North, 83% of cash buyers bought in the same location, a 9% increase from 2010, while in the West Midlands 76% did, a 6% increase.

As house prices have grown, the ability for many to be able buy homes debt-free has reduced, as has the yield on any property bought to rent out.  And with lower expectations of future capital growth in London, those buying with cash are looking further afield.

In 2010, the East of England, was the most popular choice for London cash buyers after the capital; 19% of Londoners buying with cash bought there.  But this proportion has fallen by 7% since to just 12% in Q3 2016.  Compared with last year, the proportion has fallen by 2%.


Fionnuala Earley, Director of Residential Research at Hamptons International said: “The number of cash buyers in Great Britain fell by 5% broadly in line with the overall change in all transactions.  But they are still an important part of the market, accounting for 30% of all transactions.

There are signs that the behaviour of cash purchasers is changing.  In 2010 82% of cash buyers in Great Britain bought within their home region, but this fell to 78% by 2016.  With the exception of the North and West Midlands regions, cash buyers are increasingly looking further afield, particularly those in London.  Less than half of London based cash buyers now buy in the capital.

High house prices and lower expectations of future price growth, along with lower yields for those buying to rent out, suggests they are searching out better value for money.  That is especially true for higher value or second homes where the effects of higher stamp duties are taking their toll.”

Join our mailing list:

Leave a comment



Latest Comments

Tom Allen
Tom Allen 20 Sep 2017

Absolutely agree with you!

view article
RyanGeo
RyanGeo 18 Sep 2017

A sharp correction would be a less dramatic expression to use. That is already underway in certain sectors in Reading where I practice as Chartered Surveyor

view article
sean benton
sean benton 01 Sep 2017

Identity theft is a thread for any profession. So,people should stay alarmed. I once take help from a letting agent and came to know that letting agents are taking every precaution to prevent fraudulent...

view article
Mark N.
Mark N. 30 Aug 2017

We have seen a surge in instructions over August and that should continue into September too.

view article
Chris
Chris 30 Aug 2017

Unfortunately, all the legislation bears its force on Landlords and ignores, naively, the effect of Rogue Tenants on the ability of landlords to keep houses in repair and offer properties for rent at reasonable...

view article
Christian Donovan
Christian Donovan 18 Aug 2017

The write-down on house values, combined with the fall in the GBP saddled the fund?s property portfolio with a 1.4% loss in the second quarter. The shocking amount of $240 million.

view article
Samantha Goodman
Samantha Goodman 11 Aug 2017

Interesting point of view.

view article
Samantha Goodman
Samantha Goodman 11 Aug 2017

It depends on the people, some older adults decide to make a long-distance move in order to live closer to their children or settle in a place with a lower cost of living.

view article
brandonlee10
brandonlee10 24 Jul 2017

The financial ramifications of the triggering of Article 50, the starting gun for Britain's departure from the EU, are far from clear. Buyers will be most cautious in London, given that buying a home in...

view article
IrisJ.
IrisJ. 19 Jul 2017

Great advice, but may I also add that when buying an already built home, make sure you do all of the proper inspections. Most importantly pest inspection because people tend to get surprised when they

view article
IrisJ.
IrisJ. 17 Jul 2017

The third point is, in my opinion, the most important one. People have become too inconsiderate and careless when it comes to rented properties. If a landlord wants to protect their property, regular visits...

view article
cornishalan
cornishalan 10 Jul 2017

Added to the cost of purchasing these village properties are the above average maintenance costs. Particularly where the property is a listed building or requires specialist building skills such as thatching...

view article

Related stories

More articles from Property

Property Finance Roadshow 2017

4th - 12th October

4 days
6 specialists
4 locations
Free to attend

Click here to register now