Investors could save tens of thousands with cash-only...

A new analysis of discounts available to cash buyer suggests they can save tens of thousands of pounds on some property purchases compared with rival buyers needing mortgages.

Apex Bridging has analysed current property listings in Great Britain and compared the average asking price for cash-only listings to the average price across the wider overall market.

The analysis reveals that, should these buyers choose to pay in cash rather than take out a mortgage, they can make significant savings.

The average asking price of all current market listings in Great Britain is £255,588. Meanwhile, the average price among cash-only listings is 30.2 per cent lower at £178,366. This is a saving of £77,222.

On a regional level, the biggest percentage savings are found in London where cash buyers are benefiting from a discount of 32.6 per cent. Due to the capital’s expensive market, this is a saving of £159,317.

Above average cash buyer savings are also available in Wales and the East of England (both 32.3 per cent), East Midlands (31.5 per cent), and South East (30.6 per cent).

But while the potential savings are obvious, how likely is it that you’ll be able to find a cash-only listing?

In Britain, there are currently 4,924 cash-only listings on the market. The South East is home to the largest proportion of these properties, with 1,345 listings accounting for 27.3 per cent of the national total.

Buyers in Scotland and the North East will have the hardest time finding a cash-only property, as the two regions account for just 0.7 and 1.6 per cent of the national total respectively.

“Sellers will often request a cash buyer because it tends to lead to a faster transaction by sidestepping the laborious mortgage approval process. For the privilege of speed, these sellers are willing to accept less money for their property. As our data shows, they tend to be willing to reduce the price by 30 per cent” explains the managing director of Apex Bridging, Chris Hodgkinson.

“Cash purchases also play a role when it comes to properties that have fire damage or other serious structural issues that will require immediate attention from the new buyers. Sellers will often accept a cash offer below the asking price because it means they can rid themselves of the property quickly, and it’s an acceptance that the buyer will have to spend additional money fixing it up.

“But often a cash purchase can use up the money that would otherwise be spent on renovations. In such instances, a bridging loan like those provided by Apex Bridging can provide short-term cover for shortfall in cash.

“This news will be cold comfort to the vast majority of homebuyers who have no choice but to take out a mortgage, but for anyone who is wanting to move soon and is fortunate enough to be able to afford a cash purchase, it’s vital insight."

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