"We have seen a significant increase in people looking for a cash offer for their properties, which has resulted in a record number of completions in the first half of 2023"
Nearly £6m worth of property was bought by OPG from homeowners and landlords looking for a fast and hassle-free sale in the first half of 2023. The majority were houses (87.5%), with 9% of purchases being flats, and 3% being bungalows.
From as far north as Lancashire and to East Sussex on the south coast, the average agreed purchase price was £132,789. Between Q1 and Q2, this represents a 21% uplift.
Completion time has also reduced from a 33-day average to 29 days in the same period. This is around the same time it currently takes to simply agree on a sale in the UK, with transaction times on the open market reportedly stretching over four months now.
Despite there being a lower number of transactions taking place, around two in five sales are falling through too.
With over 6,000 requests for cash offers this year from 31 counties across England and a 17% jump between Q1 and Q2, it appears more people are turning to cash buyers as the property market continues to feel the economic and social pressures.
Jason Harris-Cohen, Managing Director of OPG, commented: “We have seen a significant increase in people looking for a cash offer for their properties, which has resulted in a record number of completions in the first half of 2023.
“The majority has been from homeowners who have suffered from a dip in the market, where their properties are taking much longer to sell or they have been a victim of fall-throughs which could have prevented them making an onward purchase.
“Mortgage rates are starting to have an impact too, with some sellers opting to downsize to reduce the amount they owe or be in a position to become mortgage free.
“Unsurprisingly, we've also increased our rental purchase activities as landlords continue to face higher finance, management and tax bills. However, it's actually increasing legislation that seems to be the most common motivation for investors.
“Thankfully, we are in a position to buy any type of property, regardless of tenure, and have been able to purchase many buy-to-let properties without the landlord having to evict the tenants.
“With no end to the cost-of-living crisis on the horizon, I expect enquiries to increase for the remainder of the year. However, we predict a quieter period for onward sales as we have had slightly below expected results and will be more cautiously trading to retain more capital.”
