Fewer home buyers buying cash in the West Midlands

The number of cash buyers for homes fell in the West Midlands in the first four months of 2021, making it the second-worst region in the country.

The most recent study by Birmingham property and rental agency Barrows and Forrester found that 24 percent of buyers in the area were cash buyers between January and April this year, second only to London at 15 percent.

However, the West Midlands figure has dropped compared to the same period in 2020, when 26 percent of buyers bought their new properties unencumbered.

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Barrows and Forrester analyzed transaction data to find what percentage of homes have sold to cash buyers since the beginning of the year.

Across the UK, 27 percent of homes sold in January-April 2021 fell slightly to cash buyers, down from 28 percent in the same period last year.

James Forrester, managing director of Barrows and Forrester, said: “Choosing a cash buyer often means a much smoother property transaction, and many sellers are happy to marginally adjust their desired price expectations for buyers without mortgage assistance.

“This puts cash buyers in a very strong position, not only in terms of the price they will pay, but also in terms of their chances of securing their dream home.

In a market where demand is extremely high and many buyers are struggling for limited stock, the ability to withdraw cash has never been more attractive to UK home sellers.”

Across the country, Scotland and the South West of England had the best chances of finding cash buyers, with a third (33 percent) of homes sold to cash buyers. This was followed by North East England, where 30 percent of buyers had cash only.

To get the best chance of a cash buyer, you had to look to North Norfolk – there, 55.9 percent of buyers offered cash. This was followed by East Lindsey, Lincolnshire, with cash accounting for 55.3 percent of all sales.

In Dumfries and Galloway, Scotland, 52.9 percent of sales were completed in cash, while in Torridge, Devon, cash buyers accounted for 50.4 percent of sales. In Wales, Ceredigion cash buyers accounted for 50.2 percent of purchases.

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