Five minutes on… The Cash Buyer Landscape

As the housing market and economic outlook continues to fluctuate the cash buyer market sector recently hit an eight-year high.

More and more non-mortgage clients are entering the market looking to secure their next short or long-term investment, and each one has the sought-after incentive of being chain-free, and good to go. 

This this blog, we take a deep dive into the current Cash Buyer Landscape, by pitching questions to OneSearch’s head of Sales, Robin Wells…

1. With current economic trends around higher interest rates and low availability of mortgages, have cash purchases increased? 

It goes without saying the property sector has taken, and is still taking an unprecedented number of hits, with the initial challenges stemming from the wake of the pandemic. But our resilient market has been further tested by the war in Ukraine and the subsequent cost of living crisis together consistent interest rate increases over the last 12 months.  

I think it’s important to understand that cash purchasers and purchases have always been prevalent in our marketplace, but naturally these transactions will inevitably increase when the sale of property (especially) distressed sales become more frequent and mortgaged buyers less plentiful. 

2. Without the need for a lender, and therefore searches not strictly being required, should cash buyers look to protect themselves? 

It’s critically important to understand that searches play a vital role in a property transaction and whatever the circumstances a full range of searches as advised by a conveyancer is always the best way to get all the property information required to make an informed decision. However, some cash purchases are negotiated by buyer and seller and the timescales of search delivery can fall out of these agreed parameters, so some form alternative safeguard maybe required to enable the purchase to proceed. 

3. How can conveyancers help prospective cash buyers reduce the risks involved with a cash purchase? 

As stated before, a full suite of searches is the first and foremost the best way of providing clients the property intelligence required to transact safely. However, when a lender is not present within the transaction, a suitable insurance policy can be obtained to protect the buyer from any loss of property value or claims that may arise from not taking usual route of ordering a full search pack and the missing data within the searches not being present. 

4. Is there a more robust way to increase the cash buyers due diligence as opposed to just insurance? 

Yes, our Cash Buyer Express is a combined solution that provides some really useful property search data, such as Planning information and planning permissions, nearby road schemes, road and railway schemes, and this is nicely wrapped up with a really robust insurance policy that adds a greater layer of cover for the buyer.  

With all these barriers bypassed, wouldn’t it be good to have an added layer of protection and security without jeopardising a speedy transaction? Our infographic highlights the routes available to your clients, and how OneSearch’s Cash Buyer Express gives your clients the best of both worlds.