Sign of Economic Uncertainty? Fewer Britons Buying Homes Using Cash
According to a recent report by Hamptons International, Britons are buying fewer homes with cash than mortgage. Hamptons estimates that only around 28% of homes were bought by British consumers using cash instead of mortgage in H1 2019, after touching the highest level of 26% in 2009 and marking the lowest levels seen since this data started getting recorded in 2007.
Among cash buyers, the Hamptons report also reveals a significant reduction in the number of investors purchasing homes. 68% of homes bought using cash were purchased by home owners who wished to make them places of residence instead of purchasing homes for the sake of investment.
According to the head of research at Hamptons International, Aneisha Beveridge, “The fall in cash purchases not only reflects tighter affordability, but also a decrease in activity amongst downsizers, the group of people most likely to have built up enough equity to purchase property with cash.”
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