Cash buyers have accounted for around a third of home sales in 2023, according to a property website.
Those using cash to buy a property are on track to account for around 32% of sales in 2023, compared with a fifth (20%) on average between 2017 and 2022, Zoopla said.
Cash buyers are thought to be accounting for a larger proportion of sales for several reasons, including people in this group often being older, wealthier buyers who are less reliant on a mortgage.
Cash buyers also tend to purchase cheaper properties, Zoopla said.
The average home purchase with a mortgage is around £304,000, while the average cash purchase is just under £275,000.
Mortgage rates jumped as the Bank of England base rate underwent a string of increases, but towards the end of 2023 there have been signs of fixed rates easing as inflation slows.
The Bank of England uses rate rises as a tool to quell inflation. The easing of rates could inject some fresh confidence into the housing market.
In signs of a pre-Christmas pick-up, Zoopla also said that in the four weeks to December 17, the volume of new sales being agreed has been 17% higher than the same period in 2022.
Richard Donnell, executive director at Zoopla, said: “The housing market has been more resilient than many expected over 2023 but it hasn’t been a surprise to us.
“Mortgage regulations introduced in 2015 have stopped an over-valuation of housing which is why the decline in house prices has been modest over the year.
“House price falls have been concentrated in the South and Midlands while prices are still slightly higher over the year in Scotland and Northern Ireland.
“UK housing still looks expensive by historic standards which is why we expect UK house prices to fall a further 2% over 2024 as prices and incomes re-align.”
