Homebuyers could save an average of £77,000 by paying in cash rather than relying on a mortgage, research from Apex Bridging has revealed.
Apex analysed property listings in Great Britain and compared the average asking price for cash-only listings to the wider overall market.
The snapshot analysis revealed that, should these buyers choose to pay in cash rather than take out a mortgage, they could make significant savings.
The average asking price of all current market listings in Great Britain was found to be £255,588.
Meanwhile, the average price of cash-only listings was 30.2% lower at £178,366 – a saving of £77,222.
On a regional level, the biggest percentage savings were found in London, where cash buyers benefited from a discount of 32.6% – a saving of £159,317.
Above average savings were also available in Wales (-32.3%), the East of England (-32.3%), East Midlands (-31.5%), and South East (-30.6%).
In Britain, there were found to be 4,924 cash-only listings on the market.
The South East was home to the largest proportion of these properties, with 1,345 listings accounting for 27.3% of the national total.
The North West was home to 12.5% (617) of the total, followed by the South West (11.7%), East of England (10.3%), and West Midlands (9.8%).
Buyers in Scotland and the North East would have the hardest time finding a cash-only property, as the two regions accounted for just 0.7% and 1.6% of the national total, respectively.
Chris Hodgkinson, managing director of Apex Bridging, said: “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%.
“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.”
He added: “House prices are on their way up. Come the new year, they might rise slowly, or it might happen quickly, but it’s almost certain that prices won’t be this low again for quite some time.
“Therefore, you’re advised to act now because if you can get a deal agreed before Christmas, you could be enjoying a very happy new year indeed with double savings – the first from pouncing on lower prices, the second from your cash buyer discount.”
