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40% of properties bought without a mortgage
With latest figures for home buyers very much on the slide as mortgage funding continues to be elusive, it is interesting to know that there are still plenty of people with the cash to purchase their homes outright.
New figures from the Council of Mortgage Lenders indicate that the number of people buying their property with cash has doubled since 2005 with almost 40% of new home owners able to complete without a mortgage on their property.
The number of cash buyers may be on the increase as many are older buyers who have sold their large property in order to buy a smaller one using the equity from the sale. In parts of south west England there is evidence to suggest that up to 55% of home sales are to older owners who have made the most of their investment and are living mortgage free.
The number of cash buyers has been rising over the past few years as mortgage funding has become harder to come by and cash buyers are now forming a larger part of a slow market. In April 2005 15% of the market was made up of cash buyers in 2011 almost 40%, 27,600, of home sales were to cash buyers.
Records show that the number of people owning and living in their own properties has been falling, having peaked at 71% in 2004 and fallen back to 67% in 2010. The rental market has increased and this in turn has meant that rental properties are harder to come by.
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