Cash house sales across England and Wales dropped by 45% over the past five years, research from Property Solvers found.
Between 2020-21 and 2024-25, annual cash transactions fell from 799,592 to 437,903, a fall of more than 360,000 sales.
Mortgaged transactions went down by 44% in the same period, from 2.01 million to 1.1 million.
The South East saw the highest number of cash sales, with 74,745 deals in 2024–25, making up about 17% of the total.
The North West accounted for 13%, followed by the East of England and South West at 12% each.
The fewest cash sales were in Wales and the North East, with 4% and 5% respectively.
Ruban Selvanayagam, co-director at Property Solvers, said: “The South East remains ahead because homeowners there have built up more equity and are less reliant on borrowing.
“Many are downsizing or helping family members buy outright, which can keep cash transactions strong even as the wider market cools.”
Selvanayagam noted that the drop in cash sales was down to changing incentives for investors and those with equity.
Selvanayagam added: “From what we’re seeing through our auctions, active buyers today are seasoned investors or cash-rich individuals using long-accumulated wealth.
“They’re still buying, but far more strategically.”
The buy-to-let (BTL) market has slowed as landlords sell up or streamline portfolios.
Older homeowners and those buying with inheritance have delayed moves because of cost pressures and slower probate.
Less market liquidity and fewer listings have also made it harder for cash buyers to find value.
Overseas and high net worth demand eased, affected by a stronger pound and higher Stamp Duty surcharges.
Selvanayagam said: “The fall in cash purchases mirrors a wider slowdown in the market.
“Buyers with or without mortgages are waiting for more clarity on where prices and rates will settle.
“It’s less about a loss of confidence and more about timing – people with capital are being patient.”
He added: “When we see rate cuts feeding through and prices stabilising, there’s every chance these cash buyers will re-emerge – and quite possibly drive the next wave of transactions.”
