Last year, cash buyers represented the highest share of property market activity in a decade. This year, they have already made up one-third of all property purchases, according to Yopa's analysis.

Yopa examined the distribution between cash and mortgage homebuyers to determine the historical preference for cash transactions and compare it with the first two months of 2024.

In the previous year, 34.5% of all property transactions were completed by cash buyers. This was the highest percentage recorded since 2013, when data on cash versus mortgage transactions first became available.

In 2013 and 2014, cash buyers accounted for 33.5% and 33.3% of the market, respectively. However, in recent years, the percentage of cash buyers declined, falling below 29% between 2019 and 2022. So far in 2024, cash buyers have comprised nearly a third (32.8%) of market activity.

Verona Frankish, CEO of Yopa, commented: “Mortgages have become increasingly more expensive since interest rates started to climb and we’re now seeing the result of higher borrowing costs when it comes to buyer trends within the market.

“Not only is it far tougher for those looking to purchase with the aid of a mortgage, but as a result, cash buyers are in a far stronger position within the market making them the first choice for many sellers.

“The good news is that there is light at the end of the tunnel and the broad expectation is that interest rates will start to ease this year.

“As they do, we expect the market will return to a greater degree of normality when it comes to the cash versus mortgage buyer balance.”

In conclusion, the influence of cash buyers on the property market has grown significantly. This trend is expected to shift as interest rates potentially decrease later this year, bringing more balance between cash and mortgage buyers.