10 regions where cash buyers are securing the biggest discounts on property

Looking to buy a house with cash? We reveal the areas where you can secure the biggest discount, slashing as much as £88,000 off the asking price.

Stacks of coins next to a model house
(Image credit: © Getty images)

Amid falling house prices, cash buyers are able to secure bigger discounts on their purchases by as much as £88,000.

But, with some areas more prone to giving away discounts than others, we look at where cash buyers can bag the biggest discounts.

Discounted property prices for cash buyers could present an opportunity for buy-to-let investors, or simply for those keen to buy a house at a lower price.

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The average cash-buyer is paying £278,910 for a new property, £29,935 less than those purchasing with a mortgage. The discount has increased by £1,624 compared to the three months prior to last September’s mini-Budget, according to property purchasing specialist House Buyer Bureau.

“The property market’s rocky state has made cash-buyers more appealing to sellers looking to expedite their transaction,” says Chris Hodgkinson, managing director of House Buyer Bureau.

“Money talks and home sellers are always more inclined to listen to a cash buyer when it comes to negotiating on asking price, regardless of how the market is performing,” says Hodgkinson.

“This is down to the fact that they hold a far stronger position in the market and provide the option of a faster, more certain transaction timeline. Of course, opting for a mortgage-backed homebuyer may see you achieve a higher price, if you’re willing to take the additional time and risk.”

“However, since September last year, the market landscape has become increasingly more difficult and many of those who are reliant on a mortgage in order to buy have seen a squeeze on their purchasing potential,” continues Hodgkinson.

“This has resulted in a higher degree of market turbulence and, with house prices starting to fall, many sellers are happy to take the hit with a cash buyer in order to secure a sale before the value of their home diminishes any further.”

Where can cash-buyers secure the largest discounts?

London remains the only region in England where cash buyers are paying more than their mortgage-funded counterparts. Cash-buyers in the capital can expect to pay £19,314 more than those with a mortgage, but this has decreased by £4,010 compared to the three months prior to the mini-Budget.

But cash-buyers can secure a discount everywhere else. In the North West buyers can purchase for nearly £32,000 less on average.

In the South East the discount falls to £31,000 while those buying in the East of England, Scotland and the North East can get discounts of as much as £29,217, £25,487, and £23,598 on average.

“On a more granular level, it’s Three Rivers in Hertfordshire that is currently home to the largest house price discounts for cash buyers,” House Buyers Bureau said. “The average price paid by cash buyers in the area is £539,529, a huge £88,456 below the price paid by a mortgage-backed homebuyer.”

Buyers in Epsom and Ewell in Surrey can get the second largest discount, with those paying in cash paying £75,201 less than mortgage holders.

These are the top 10 areas where cash is king:

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AreaAverage cash house price (Oct 2022 - Dec 2022)Average mortgage house price (Oct 2022 - Dec 2022)Difference
Three Rivers, Hertfordshire£539,529£627,986£88,456
Epsom and Ewell, Surrey£515,772£590,973£75,201
East Renfrewshire, Scotland£238,594£312,476£73,881
Wokingham, Berkshire£466,253£538,423£72,170
St Albans, Hertfordshire£563,389£632,766£69,366
Waverley, Surrey£533,150£599,372£66,222
Hart, Hampshire£449,340£515,046£65,706
Warwick, Warwickshire£324,441£387,509£63,068
Rochford, Essex£394,224£457,046£62,822
Solihull, Warwickshire£301,873£363,460£61,587

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Nicole García Mérida

Nic studied for a BA in journalism at Cardiff University, and has an MA in magazine journalism from City University. She joined MoneyWeek in 2019.