New data from Property Solvers, based on HM Land Registry figures, shows that the number of cash house sales across England and Wales has fallen sharply over the past five years. Between 2020–21 and 2024–25, annual cash transactions declined by 45%, dropping from 799,592 to 437,903. The fall of more than 360,000 sales points to a sustained cooling in what was once one of the market’s most resilient segments.
The same data shows that mortgaged transactions have also weakened, down 44% during the same period, from 2.01 million to 1.1 million. Although both markets have slowed, cash sales continue to play a vital role in maintaining activity. These purchases often progress more smoothly because they avoid the need for mortgage approvals, surveys or lender involvement, helping transactions complete more quickly.
For sellers seeking certainty and for buyers looking to strengthen their negotiating position, cash deals remain an effective route despite the overall decline.
South East leads cash sale volumes
Regional patterns show the South East maintaining its position as the country’s strongest area for cash transactions, recording 74,745 in 2024–25, or around 17% of the national total. The North West follows with 13%, alongside the East of England and South West, each accounting for around 12%.
At the lower end of the scale, Wales and the North East continue to see the fewest cash transactions, representing just 4% and 5% respectively.
“The South East remains ahead because homeowners there have built up more equity and are less reliant on borrowing,” explained Ruban Selvanayagam, co-director at Property Solvers. “Many are downsizing or helping family members buy outright, which can keep cash transactions strong even as the wider market cools.”
Factors behind the decline
Selvanayagam noted that the fall in cash sales reflects changing incentives for investors and equity-rich buyers.
Higher interest rates have made alternative investments, such as cash savings, gilts and stock market funds, more attractive. With returns of 4–5% available elsewhere, property, with its ongoing costs and potential risks, no longer offers the same appeal.
Cash buyers are also becoming more selective, often waiting for price corrections or distressed opportunities. “From what we’re seeing through our auctions,” said Selvanayagam, “active buyers today are seasoned investors or cash-rich individuals using long-accumulated wealth. They’re still buying, but far more strategically.”
The buy-to-let sector has cooled as landlords streamline or exit portfolios, while older homeowners and inheritance-funded buyers are holding back amid cost pressures and slower probate processes.
Market liquidity has also tightened. With fewer listings and cautious pricing, even cash buyers are finding it harder to secure good value. Overseas and high-net-worth demand has dipped as well, affected by a stronger pound and higher stamp duty surcharges.
A temporary slowdown
Despite the sharp decline, Selvanayagam sees the trend as a pause rather than a collapse. “The fall in cash purchases mirrors a wider slowdown in the market,” he commented. “Buyers with or without mortgages are waiting for more clarity on where prices and rates will settle. It’s less about a loss of confidence and more about timing – people with capital are being patient.”
He added that recovery could follow once borrowing costs start to ease and sellers adjust expectations. “When we see rate cuts feeding through and prices stabilising, there’s every chance these cash buyers will re-emerge – and quite possibly drive the next wave of transactions.”
