The proportion of landlords acquiring properties in cash has reached an all-time high of 65%, according to fresh data from Countrywide.

The highest proportion of cash transactions came in the North East of England, where 78% of buy-to-let investors paid in cash over the last 12 months, seemingly reflecting cheaper house prices.

In contrast, 42% of buy-to-let investors paid in cash in London, where property values are much higher.

Johnny Morris, research director at Countrywide, said: “Landlords have increased their housing wealth considerably over the last 10 years. This means cash purchases are steadily becoming a bigger part of the market.  But a landlord buying with cash will often have a mortgage either on their personal home or other properties in their portfolio.

“Rising prices have allowed landlords to take equity out of both their personal or other rental homes to expand their portfolios.”

Source: Countrywide

Value of volume of cash and mortgaged landlord purchases

 

Cash investors by number Cash investors by value Value of cash investor purchases Value of mortgaged investor purchases
2007 40% 34% £15,906,637,239 £30,621,093,887
2008 45% 34% £7,123,021,165  £14,058,335,527
2009 53% 55% £9,033,503,229  £7,512,847,910
2010 58% 57% £9,822,264,742  £7,472,528,153
2011 60% 59% £12,523,438,427  £8,607,602,932
2012 59% 58% £12,965,860,135  £9,424,657,460
2013 57% 55% £15,752,388,746  £12,847,355,436
2014 56% 54% £19,723,785,342  £16,690,792,162
2015 56% 52% £20,796,624,136  £19,236,317,264
2016 59% 55% £20,804,696,172  £16,936,388,079
Last 12 months 65% 61% £21,030,987,287  £13,355,841,389