A prominent London agency says cash buyers are securing substantial discounts in prime areas of the capital.
The biggest cash discount currently seen across the prime market is the W1 postcode in Mayfair. Cash buyers are paying an average of £2.320m for property in the postcode, £81,772 less than their mortgage-funded counterparts.
The WC2 postcode in Covent Garden is also gifting cash buyers a considerable saving in the current market, with a £54,826 difference between the average cash and mortgage house price.
“Regardless of the value of a property, a cash buyer often means a smoother, quicker and more stable selling process as there is no chain beyond them to complicate the transaction. This can be preferable for many sellers but it does often mean adjusting their price expectations” explains Benham and Reeves managing director Marc von Grundherr.
NW8 in St John’s Wood ranks with the third highest cash property purchase discount with a £40,000 saving.
A further 24 prime London postcodes are seeing homebuyers secure a saving between £4,000 and £40,000 when compared to those buying with the aid of a mortgage.
“We see many foreign buyers, in particular, benefit from a cash funded purchase as they generally tend to have a strong financial position and are entering the market fresh with no previous purchase slowing them up” adds con Grundherr.
“The London market currently provides a very attractive proposition, with a weaker pound and the additional benefit of a stamp duty discount meaning foreign cash buyers are saving themselves quite a considerable sum and are securing extremely good value for money.”
The W4, N5 and SW19 postcodes are the only pockets of the prime London market where cash buyers are paying more than those buying with the help of a mortgage.