Cash buyers make up record 65% of buy-to-let purchase...

The proportion of landlords acquiring properties in cash has reached an all-time high of 65%, according to fresh data from Countrywide.

The highest proportion of cash transactions came in the North East of England, where 78% of buy-to-let investors paid in cash over the last 12 months, seemingly reflecting cheaper house prices.

In contrast, 42% of buy-to-let investors paid in cash in London, where property values are much higher.

Johnny Morris, research director at Countrywide, said: “Landlords have increased their housing wealth considerably over the last 10 years. This means cash purchases are steadily becoming a bigger part of the market. But a landlord buying with cash will often have a mortgage either on their personal home or other properties in their portfolio.

“Rising prices have allowed landlords to take equity out of both their personal or other rental homes to expand their portfolios.”

Value and volume of cash landlord purchases

Source: Countrywide

Value of volume of cash and mortgaged landlord purchases

	Cash investors by number	Cash investors by value	Value of cash investor purchases	Value of mortgaged investor purchases
2007	40%	34%	£15,906,637,239	£30,621,093,887
2008	45%	34%	£7,123,021,165	£14,058,335,527
2009	53%	55%	£9,033,503,229	£7,512,847,910
2010	58%	57%	£9,822,264,742	£7,472,528,153
2011	60%	59%	£12,523,438,427	£8,607,602,932
2012	59%	58%	£12,965,860,135	£9,424,657,460
2013	57%	55%	£15,752,388,746	£12,847,355,436
2014	56%	54%	£19,723,785,342	£16,690,792,162
2015	56%	52%	£20,796,624,136	£19,236,317,264
2016	59%	55%	£20,804,696,172	£16,936,388,079
Last 12 months	65%	61%	£21,030,987,287	£13,355,841,389

Source: Countrywide

Regional volume and value of cash landlord purchases (GB) – last 12 months

	Cash investors	Amount spent by cash landlords for every £1 spend by mortgaged landlords
North East	78%	£3.17
Scotland	71%	£2.31
North West	70%	£2.12
West Midlands	66%	£1.96
Yorkshire & Humber	66%	£1.95
South West	65%	£1.96
East Midlands	63%	£1.65
Wales	62%	£1.68
South East	59%	£1.47
East of England	57%	£1.23
London	42%	67p
Great Britain	65%	£1.57