According to the latest research by House Buyer Bureau, cash buyers in the UK property market have been able to secure discounts as high as £88,000. This phenomenon is due to the market starting to wobble following last September's catastrophic mini-Budget. The analysis shows that across Britain, the average cash buyer is now paying £278,910, which is £29,235 less than those purchasing with a mortgage.

Interestingly, the North West is currently home to the largest property price gap between cash and mortgage funded homebuyers. Cash buyers in this region are purchasing properties for almost £32,000 less than those purchasing with a mortgage.

Last September's disastrous mini-Budget has proved to be costly for the nation's home sellers. Figures from the Halifax House Price Index show that house prices fell by -2.4% between September and November, and a further -1.3% between November and December. While some degree of stability has returned in 2023, house prices are yet to regain momentum. They have stalled at 0% between December and January, which provides an opportunity for cash buyers to cash in due to their stronger market position.

Chris Hodgkinson, the managing director of House Buyer Bureau, explains that "money talks and home sellers are always more inclined to listen to a cash buyer when it comes to negotiating on asking price, regardless of how the market is performing."

“This is down to the fact that they hold a far stronger position in the market and provide the option of a faster, more certain transaction timeline.

“Of course, opting for a mortgage-backed homebuyer may see you achieve a higher price, if you’re willing to take the additional time and risk.

“However, since September last year, the market landscape has become increasingly more difficult and many of those who are reliant on a mortgage in order to buy have seen a squeeze on their purchasing potential.

“This has resulted in a higher degree of market turbulence and, with house prices starting to fall, many sellers are happy to take the hit with a cash buyer in order to secure a sale before the value of their home diminishes any further.”

The analysis also shows that the South East, East of England, Scotland, and the North East are home to some of the largest gaps between cash and mortgage funded homebuyers. However, London is currently the only region where cash buyers are paying more than their mortgage funded counterparts, £19,314 on average since September of last year to be exact.