Cash buyers are becoming increasingly common, with one in every three homes in the UK being bought without a mortgage, researchers have found.
Recent figures, released by Hamptons International, have revealed that during 2013 the number of cash buyers in Britain increased by more than 30 per cent. Around 350,000 properties were bought in this way, equating to 36 per cent of all house sales across the country.
First-time buyers were also responsible for a significant number of house sales, accounting for 28 per cent of the market, propertywire.co.uk reports.
The research also revealed that in 2013 70 per cent of these cash buyers were not being funded by selling their current property to fund their next purchase.
Johnny Morris, head of research at Hamptons International, told telegraph.co.uk that because the majority of cash buyers are buying property but not selling, this has meant fewer homes are coming onto the market and this is adding to the housing shortage problem.
Mr Morris said: “Low levels of stock have been a factor driving rapid price increases, particularly in the South of England. Until we see more owners moving home, who have properties to sell as well as buy; the shortage of homes for sale is likely to continue. The result being that 2014 looks to remain, resolutely a sellers’ market.”