Cash sales could be running at 30%, says CML
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The Council of Mortgage Lenders says mortgage-financed house sales may account for only 70% of transactions, with cash buyers making up the rest.
The trade body makes the estimate in its December housing finance newsletter and says that while residential transactions hit a post-war low in 2008 it expects sales activity to be even lower in 2009 despite recent improvements. It expects only a small improvement in 2010.
Analysis of its data shows cash sales have become progressively more important in the past few years. While the estimated number of cash sales has fallen in the past two years the proportion of such sales has risen mainly because of a dramatic decline in the number of mortgage-financed transactions.
But the CML warns that there can be no certainty that recent levels of cash purchases will persist next year.
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