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

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 of volume of cash and mortgaged landlord purchases

 Source: Countrywide

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

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