Did You Know Cash Buyers Get Discounts up to £28,000 for Properties?

By Evans Momodu
2 minute digest


Cash buyers are paying significantly less for properties than those using mortgages, with the average discount standing at £28,000, according to data from MPowered Mortgages.

These buyers, who can purchase homes outright, secure discounts of between 9% and 13.4% compared to their mortgage-dependent counterparts, benefiting from their ability to close deals quickly in a competitive market.

The trend has intensified since the economic fallout from Liz Truss’s 2022 mini-budget, with the "cash discount" increasing by 12.4%.

Regional Variations

The size of the discount varies across the UK:

• North West: £31,827 less on average for cash buyers.
• Scotland: £26,476 average discount (12.8%).
• North East England: £22,122 (12.4%).
• London: The only exception, where cash buyers paid an average of £15,344 more than mortgage buyers in September 2024, driven by high demand from foreign investors.

Why Cash Buyers Benefit

Stuart Cheetham, CEO of MPowered Mortgages, explained that cash buyers hold a significant advantage because they can proceed quickly, a major appeal in a market where sellers face delays. The average transaction in England and Wales now takes 152 days from offer of acceptance to completion.

Sellers often prioritise speed and certainty, making cash buyers more attractive even if their offers are lower. With rising mortgage demand and fewer cash buyers in the market, this trend is expected to continue.
Source: Sky news 
Image: Property24