New data has been released by HM Land Registry showing the number of properties which were bought using solely cash.
Sourced from the UK House Price Index (UK HPI), the figures will also inform professionals as to the number of mortgage sales transactions and well as registered new build and resold properties.
According to the latest update from HMLR, the new data indicates that in Great Britain, cash sales represent around 30% and 40% of transactions. On a more regional level, however, the highest proportion take place in the South West (around 40%), with the lowest being in London (around 25%.)
New build property numbers will also be made more accessible following the introduction of volume information, enabling users to more easily establish purchasing trends. In turn, according to HMLR, this will assist users in providing greater clarity on household credit.
The availability of these figures will mean comparison with existing data will be made more simple, and form part of the Registry’s broader objective to improve transparency and access to valuable statistics.
For conveyancers, transactions which solely involve cash are more likely to be considered a risk. In light of guidance provided by organisations such as HM Revenue & Customs, large amounts of cash being handled could signal money-laundering, prompting firms to ensure that they validate the source of the funds.
Commenting on this was Gerry McFall, Commercial Director of Lawyer Checker. He stated: “Cash purchases are high risk files because conveyancers need to be vigilant to the source of funds. On these files enhanced client due diligence and being aware of the risks is vitally important to stop conveyancers getting caught up money laundering.”
