Cash buying on the rise
myhomemove said nearly a quarter of its clients are cash buyers highlighting that bricks and mortar offer investors a safe home for their money.
Doug Crawford, CEO of myhomemove, said: “As the largest provider of conveyancing services in the UK, myhomemove is well placed to spot the trends within the housing market.
“Since 2010 we have witnessed the number of people buying without a mortgage steadily increase.
“In 2012, 22.5% of our clients were cash buyers, investing an average of £185,000 in property outside of London and £240,000 within the capital. Early figures for 2013 also show similar results.”
Crawford said the increase in could be attributed to the Bank of England’s decision to keep the base rate at 0.5% and savers are struggling to find a decent return on their investments.
Crawford said: “Despite the poor performance of interest rates for savers, the property market can still offer a good return on investment.
“The average amount of rent paid for a three bedroom house in England, excluding London, is £670 a month.
“This means that on an investment of £185,000, the annual return will be close to 4.5% – interesting food for thought for those looking to make their money work for them during difficult economic times.”