Research Identifies Inverclyde as Leading Area for Cash Property Purchases; Harlow Sees Steep Decline
A comprehensive new study has identified significant changes in the UK property market, focusing on regions with the largest increases and decreases in cash purchases of properties since 2013.
The analysis, undertaken by UK mortgage broker SPF.co.uk, leveraged HM Land Registry data to evaluate the trend of outright property purchases over the last ten years.
Inverclyde Leads the Way
Inverclyde has emerged as the region with the most substantial increase in cash property purchases. Since 2013, the region has experienced an impressive 39.4% increase in the percentage of homes purchased outright. In 2023, 50.1% of all property sales in Inverclyde were cash transactions, compared to just 36% in 2013. This notable increase is accompanied by a relatively affordable average house price of £123,000, according to the Office for National Statistics (ONS). First-time buyers in the region paid an average of £100,000 for their first homes as of April 2024, marking a £10,000 increase from the previous year.
Hart and Solihull Follow
Hart in Hampshire and Solihull in the West Midlands have also witnessed notable rises in the proportion of properties bought with cash. Hart experienced a 26.1% rise, with 33.5% of all property sales in 2023 being cash transactions. The average property price in Hart stands at £467,000, substantially higher than the national average of £285,000.
Solihull recorded a 25.4% increase, with 35.8% of all properties bought outright last year, up from 28.6% in 2013. The average house price in Solihull is £337,000, reflecting a 47% increase compared to nearby Birmingham.
Rushcliffe and Redcar & Cleveland Round Out the Top Five
Both Rushcliffe in Nottinghamshire and Redcar & Cleveland have also experienced notable increases in cash purchases. Rushcliffe recorded a 22.9% rise, with 36.2% of properties sold outright in 2023, compared to 29.5% in 2013. The average house price in the region stands at £346,000, while first-time buyers typically spend around £275,000.
Redcar & Cleveland saw a 21.9% increase in cash purchases, with 40.7% of all properties sold in 2023 being bought outright. The average house price in the area is £158,000, with first-time buyers paying an average of £141,000.
Top 10 areas with the largest increase, ranked
| Rank | Local authority | Cash sales 2013 | Cash sales 2023 | Percentage – cash sales 2013 | Percentage – cash sales 2023 | Total sales change |
| 1 | Inverclyde | 371 | 591 | 36.0% | 50.1% | 39.4% |
| 2 | Hart | 432 | 379 | 26.6% | 33.5% | 26.1% |
| 3 | Solihull | 881 | 857 | 28.6% | 35.8% | 25.4% |
| 4 | Rushcliffe | 596 | 568 | 29.5% | 36.2% | 22.9% |
| 5 | Redcar and Cleveland | 536 | 682 | 33.4% | 40.7% | 21.9% |
| 6 | City of Aberdeen | 1613 | 1445 | 29.2% | 35.4% | 21.34% |
| 7 | Kensington and Chelsea | 1298 | 855 | 49.1% | 59.5% | 21.29% |
| 8 | Gateshead | 635 | 681 | 26.2% | 31.7% | 21.0% |
| 9 | City of London | 215 | 83 | 49.7% | 59.7% | 20.3% |
| 10 | Na h-Eileanan Siar | 109 | 157 | 44.7% | 53.6% | 20.0% |
Significant Decreases in Cash Purchases
On the other end of the spectrum, several regions experienced sharp declines in the proportion of cash property purchases. Harlow in Essex saw the most significant decrease, with a 44.9% drop between 2013 and 2023. In 2023, only 14.5% of all house purchases in Harlow were cash transactions, compared to 26.3% in 2013. The average house price in Harlow is £309,000, according to the ONS.
Top 10 areas with the largest decrease, ranked
| Rank | Local authority | Cash sales 2013 | Cash sales 2023 | Percentage – cash sales 2013 | Percentage – cash sales 2023 | Total sales change |
| 1 | Harlow | 279 | 120 | 26.3% | 14.5% | -44.9% |
| 2 | Barking and Dagenham | 299 | 99 | 16.7% | 9.8% | -41.4% |
| 3 | Thurrock | 442 | 172 | 21.0% | 12.5% | -40.5% |
| 4 | Slough | 257 | 92 | 18.1% | 10.9% | -39.7% |
| 5 | Luton | 531 | 247 | 25.4% | 16.5% | -35.2% |
| 6 | Crawley | 290 | 142 | 21.1% | 14.6% | -30.8% |
| 7 | Medway | 1040 | 560 | 27.4% | 19.1% | -30.5% |
| 8 | Stevenage | 260 | 130 | 24.7% | 17.2% | -30.3% |
| 9 | Waltham Forest | 591 | 311 | 20.3% | 14.5% | -28.7% |
| 10 | Swindon | 1025 | 558 | 28.8% | 20.7% | -28.4% |
Barking and Dagenham and Thurrock Among the Worst Hit
Barking and Dagenham in London and Thurrock in Essex also saw substantial declines in cash purchases. Barking and Dagenham experienced a 41.4% decrease, with just 9.8% of all property sales in 2023 being cash transactions. The average house price in this London borough is £330,000.
Thurrock recorded a 40.5% drop in cash purchases, with only 12.5% of all property sales in 2023 being outright transactions. The average house price in Thurrock stands at £303,000.
Slough and Luton Follow
Slough and Luton also saw considerable decreases in cash purchases. Slough recorded a 39.7% drop, with only 10.9% of all property sales in 2023 being cash transactions. The average house price in Slough is £330,000. Luton saw a 35.2% decrease, with just 16.5% of all properties bought outright in 2023. The average house price in Luton is £270,000.
Industry Insights
Mark Harris, Chief Executive of SPF.co.uk’s Private Clients, commented on the findings: “The research highlights a clear trend of increasing cash purchases in certain regions outside of London, likely due to the savings built up during the pandemic and the high costs associated with borrowing. However, the overall decline in cash sales reflects the broader challenges faced by the property market, including rising prices and economic uncertainties.”
