A press release from myhomemove, the leading provider of conveyancing services in the UK, reported that nearly a quarter of its clients are buying their homes in cash as the number of people buying without a mortgage steadily increases.
The CEO of myhomemover, Doug Crawford, said “As the largest provider of conveyancing services in the UK, myhomemove is well placed to spot the trends within the housing market. Since 2012 we have witnessed the number of people buying without a mortgage steadily increase. In 2012, 22.5% of our clients were cash buyers, investing an average of £185,000 in property outside of London and £240,000 within the capital. Early figures for 2013 also show similar results.”
High interest rates before the recession made it possible for savers to get a decent return on their investments. However, since the recession high interest rates that were once between 5.25% and 5.75% have fallen, and the decision by the Bank of England of to keep the base rate at 0.5% means savers are struggling to earn on their investments.
Crawford continued saying, “Despite the poor performance of interest rates for savers, the property market can still offer a good return on investment. The average amount of rent paid for a three bedroom house in England, excluding London, is £670 a month. This means that on an investment of £185,000, the annual return will be close to 4.5%-interesting food for thought for those looking to make their money work for them during difficult economic times. “
In their press release myhomemove states, “Last year myhomemove helped nearly 30,000 people to buy, sell or remortgage their homes. According to HMLR data myhomemove is the largest provider of conveyancing services in the UK.
“myhomemove is committed to providing a personal, trusted and value-based service to all of its clients; ensuring the stresses associated with moving home are minimised. “