A new study has revealed a significant drop in cash property purchases across parts of the UK, with Harlow in Essex experiencing the sharpest decline. Between 2013 and 2023, the percentage of homes bought outright in the town plummeted by 44.9%, according to research by mortgage broker SPF.co.uk.
The study, which analysed data from HM Land Registry, found that in 2013, 26.3% of all properties in Harlow were purchased with cash. By 2023, that figure had fallen to just 14.5%, with the average property in the area now costing £309,000, according to the Office for National Statistics (ONS).
Barking and Dagenham in London saw the second-largest drop, with a 41.4% reduction in cash sales. Last year, just 9.8% of homes in the borough were bought outright, compared to 16.7% in 2013. The current average property price in Barking and Dagenham stands at £330,000.
Thurrock, another Essex area, took third place, with the number of homes bought with cash dropping from 21% in 2013 to 12.5% in 2023, a fall of 40.5%. House prices in Thurrock now average £303,000.
Other areas that saw significant declines in cash purchases include Slough, Luton, and Crawley, all of which recorded drops of over 30% in the last decade. Slough, which ranks fourth in the study, saw just 92 cash sales last year. The average house price in the town is currently £330,000.
At the opposite end of the scale, Inverclyde in Scotland recorded the largest increase in cash purchases, with a 39.4% rise over the ten-year period. In 2023, more than half (50.1%) of all homes in Inverclyde were bought outright, compared to 36% in 2013. The area remains one of the most affordable in the UK, with the average property price at £123,000. First-time buyers in Inverclyde pay around £100,000 on average, a figure that has risen by £10,000 since 2023.
Other regions with notable increases in cash property purchases include Hart in Hampshire, Solihull, and Rushcliffe, which all saw rises of over 20%.
Mark Harris, Chief Executive of SPF.co.uk’s Private Clients, commented on the findings: “Outside London, there has been a growing trend of cash purchases post-pandemic, possibly due to savings accumulated during Covid-19. Despite this, overall cash sales have decreased, with ONS data showing a drop from 254,000 in 2013 to 186,000 in 2023. Higher property prices and the rising cost of living may have contributed to fewer people buying homes outright.”
Harris also pointed out that properties in London and the South East, where prices tend to be significantly higher, have become less affordable for cash buyers. “Economic uncertainty and the shift to remote working have also encouraged people to move away from major cities and look for opportunities in more affordable regions,” he added.
The report sheds light on how economic conditions and changing buyer preferences are reshaping the UK property market, with affordability and regional differences playing a growing role in cash purchases.
