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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 and volume of cash landlord purchases

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

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

 

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