cash buyers

Cash buyers securing even more attractive discounts in current market

In a bid to ensure their property sale goes through, more sellers are favouring cash buyers over mortgaged ones – and this often comes with a good deal for the buyer. 

It is a well-known fact that cash buyers can come with fewer complications and a reduced chance of fall-through than mortgaged buyers. As a result, sellers will often be happy to accept a lower offer from someone offering cash, as it speeds up the process for both parties.

Over the past couple of years, mortgage rates have increased and so has the level of uncertainty when it comes to affordability in the mortgage market. While buyer appetite is still strong, transaction levels have been down and much of this is down to this uncertainty.

New research from Octane Capital has revealed that cash buyers have been receiving even greater discounts than usual on their property purchases since mortgage rates began to climb in December 2021. At that time, its research found those buying with cash paid an average of 8.5% less than mortgaged buyers.

In numbers, this meant that a non-mortgaged buyer was paying an average of £255,616 for a property at that time, while someone using a mortgage to secure the purchase was paying an average of £279,220.

By August 2023, when the Bank of England base rate was frozen at 5.25% (having climbed from a record-low of 0.1% in 2021), sellers were accepting offers from cash buyers at 9.4% lower than for mortgaged buyers. This meant borrowers were paying an average of £301,932 for a property, compared with £273,685 for a cash buyer.

Today, Octane Capital’s data shows that this has increased even further, with a 9.7% discount for cash buyers compared to mortgaged ones; which equates to £268,346 versus £297,185. Along with the savings you get from not having to pay mortgage fees, and the interest you save, this makes buying with cash even more lucrative for those who can.

Best discounts for cash buyers in the north

For buyers or investors with cash to spare, the best discounts can be found in the north of England, where property prices are also the lowest on average.

In the north east, a straightforward cash purchase of a property can be completed with a huge 14.6% discount on average. In the north west, the average cash buyer can get 14.1% wiped off the price of a property compared with a mortgaged buyer.

The West Midlands is also a strong location for those looking to invest with cash, with average discounts of 8%.

However, London is a law unto itself when it comes to buying methods. In the capital, cash buyers in December 2021 were actually paying 5.1% more than borrowers, while today that figure is 3.2%. This is likely due to the fact that prime central London attracts a large proportion of cash buyers, and this obviously comes with heftier price tags than the average property.

Sellers are willing to stretch

CEO of Octane Capital, Jonathan Samuels, commented: “Sellers will always offer discounts to cash buyers as they provide a swifter, more certain sale without the potential pitfalls that can come from those purchasing with the help of a mortgage.

“However, in recent years the extent to which sellers are willing to stretch for a cash buyer has only increased and this has been largely due to the uncertain mortgage market conditions spurred by higher interest rates.

“With the base rate increasing consistently between December 2001 and August 2023, many mortgage-backed buyers were simply finding that their borrowing eligibility was changing from one day to the next, leading to an increase in withdrawn or amended offers, with many more opting to put their plans to purchase on hold completely.

“As a result, sellers have been more inclined to slash their price expectations even further for a cash buyer, as the benefit of their far stronger market position far outweighs the discounted price required to secure them.”

There are numerous benefits to being a cash buyer, one main one being that you can complete a transaction much more quickly – and of course secure a better price in the process. The fact you are chain-free is a huge draw for sellers, and there is no uncertainty over the amount you have to spend.

For investors, aside from the fact that you own your property outright and will not be paying interest on any borrowing, you could also have access to a wider range of properties, as renovation projects or other unusual properties are sometimes listed as ‘cash buyer only’.

Read more UK property news here.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:


Sign up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
Manchester property investment


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT