As property owners seek quick sales amid a turbulent market, Open Property Group (OPG), a professional cash buyer, has reported a substantial 56% increase in property purchases in the past year. Compared to Q1 2023, the company has seen completions more than double.
Throughout the first half of 2023, OPG acquired nearly £6m worth of property from homeowners and landlords seeking a swift and straightforward sale. Of these purchases, a significant 87.5% were houses, followed by flats at 9%, and bungalows making up the remaining 3%.
OPG’s purchase footprint stretches from Lancashire in the north to East Sussex on the south coast. The average purchase price was pegged at £132,789, marking a 21% increase between Q1 and Q2.
The time taken to complete transactions has also reduced, with the average time dropping from 33 to 29 days. Notably, this is around the same amount of time it takes to agree on a sale in the UK’s current property market, where transaction times reportedly stretch over four months.
The company’s data revealed that despite the fewer transactions occurring, approximately two in every five sales are falling through. This year, over 6,000 requests for cash offers have been made from 31 counties across England, a 17% increase between Q1 and Q2. These figures suggest that cash buyers are becoming increasingly sought after as the property market grapples with ongoing economic and social pressures.
Jason Harris-Cohen, managing director of OPG, said: “We’ve seen a significant rise in people seeking cash offers for their properties, resulting in a record number of completions in H1 2023. Many homeowners, who have suffered from a dip in the market where properties are taking longer to sell or fall-throughs have hindered their onward purchase, are driving this surge.”
Harris-Cohen also pointed to rising mortgage rates impacting sellers’ decisions, with many choosing to downsize to reduce their debts or achieve mortgage-free status. He added that increased rental purchases are a result of landlords facing higher finance, management, and tax bills.
“With no end to the cost-of-living crisis in sight, I expect enquiries to increase for the remainder of the year. However, we predict a quieter period for onward sales as we have had slightly below expected results and will be more cautiously trading to retain more capital.”
