According to statistics from Nationwide, the second largest mortgage lender in the UK, almost four out of every ten homes sold did not require a mortgage in the first quarter of 2015.
Nationwide said that 38 per cent of properties sold were sold to cash buyers, 2 per cent higher than the average figure last year.
This record high is being attributed to low interest rates, which helped encourage investments into bricks and mortar. Mortgage lending has also been restricted by banks in recent years.
The number of cash buyers has risen since 2008, but not the proportion. However, levels have not managed to reach the peak of 2007, which happened during the housing boom.
Data from the Bank of England has indicated that the figure is unlikely to remain at the record high level, as April saw a 14-month high for mortgage approvals.
Alex Gosling, of HouseSimple.com, said: “I suspect [the proportion of cash buyers] will fall throughout the year as lenders and borrowers adjust to, and become more familiar with, the new lending rules. This realignment of buyers with lenders may well be evident in the strong mortgage approvals data issued this week by the Bank of England.”
Nationwide’s figures also indicated that May’s house prices are 4.6 per cent higher than they were a year ago, with the average property price now £195,166.
