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May 16, 2023
5 minute read
In the past, even the best cash house buying companies have been seen as a last resort. Sellers would only turn to them if they were desperately trying to avoid repossession or they needed to sell a house fast following divorce or to split an inheritance. However, with the housing market slowing, cash house buyers are becoming a more common option to consider. So who is using the service these days, and how can a cash buyer help with a standard sale?
The last few years have seen frantic activity in the housing market, driving up demand and sending prices skywards. According to the Land Registry and the ONS, house prices rose 71% in the ten years to July 2022, including a 15% rise in the year 2021-2022. That took the average house price in the UK from around £170,000 to over £292,000 in just a decade – a rise of over £12,000 per year.
Since October, however, house prices have started to slow. Nationwide Building Society reports a drop in house prices of 2.7% in the year to April 2023, with the OBR, predicting a drop of 9% over the next two years. The Times reports that sellers are taking an average hit of £14,000 on their original asking price in order to sell their homes, and Zoopla says demand has dropped by between 20% and 50%.
Lower demand and a backdrop of falling house prices has turned a vibrant seller’s market into a slower-moving buyer’s market. Buyers are now in charge, and are flexing their muscles on price and specification. Cautious buyers are prone to changing their mind at the last minute, either pulling out or ‘gazundering’ with a lower offer late in the day. This leads to broken chains, which only slows down the process even further.
It’s not just buyers who are having second thoughts. With a drop in prices predicted over the next two years, many mortgage companies are also reluctant to lend beyond a certain point. The banks and building societies are already starting to price in the predicted falls in value to protect their investment, leaving buyers struggling to get the funds they need. Reports of mortgage lender down valuations are on the rise.
Faced with many months grinding through a slow market, haggling with potential buyers who hold all the cards, it’s no surprise that more sellers are turning to cash house buying companies to sell their home. Using a cash buyer may not get you the full market value, but it does guarantee a quick sale, with no selling costs, no hassle with viewings and no need to repair or redecorate your home ready to sell.
Industry expert, Kelvin Elliot, Buying Director of MyHomebuyers.co.uk, has seen this change first hand. “The handbrake turn in the market has come breathtakingly fast,” he says. “This time last year, homes were still selling in just a few weeks, but already we’re seeing homes linger on the market for months, putting those dreams of moving on a frustrating hold. We’re seeing more and more standard sellers turning to cash home buyers for a quick and easy sale, offsetting the cost of the service with the gains they’ve made in the past few years.”
It appears that cash home buyers are no longer just for ‘distress sales’; they have become a genuine option for anyone looking to move fast. Only getting up to 85% of market value may seem like a prohibitive loss for many, but after a rise of roughly the same amount in the year to July 2022 alone, many are saying easy come, easy go, and are opting to spend that price rise on an easy sale.
Take off the cost of an estate agent – often as much as 1%-2% + VAT – plus legal fees and other incidental costs of a standard sale, and the deal becomes even more attractive.
With the housing market so fragile, no one wants to see a whole chain collapse because one sale falls through. The estimated cost of a failed sale is £2.7K on average and can be as much as £5,000 to lose a move at the last minute, and you have the heartbreak of having to start all over again from scratch. Selling to a cash buyer in this situation can fix the chain and get you moving again, saving you time and money.
The best cash house buying companies can also be a big help if you’ve found your dream home and don’t want to risk losing it. Taking a hit on a quick cash sale might take some swallowing, but if you have genuinely found your forever dream cottage in Devon, or that perfect apartment on the Kent coast, it could well be worth it. After all, it’s not about the numbers, it’s about making your move work.
Even the best cash house buying companies understand that the service is not right for everyone, as Kelvin explains. “It’s your decision,” he says. “We’ll give you an instant estimate, and a confirmed offer within 24 hours, but there’s no obligation, and it’s up to you whether you want to proceed.”
“If you’re struggling to sell in the current market, it costs you nothing to find out what a quick sale would cost you. The best cash house buying companies will be happy to give you all the information you need without obligation. You can then compare this to your other options, such as dropping your asking price or waiting out the storm. Who knows; it could be the lifeline you’re looking for.”
If you want to get an instant idea of what your cash offer might be, My Homebuyers have a quick and easy calculator to give you a steer and to compare with the valuations you’ve received from your local estate agents.
Looking to sell your house quickly? My Homebuyers can buy it fast. A guaranteed cash sale, simple, certain and stress-free.
Click to get a cash offer or call 0800 4647717 and find out how much we can offer for your home in just 2 minutes.
March 25, 2025 
