More than half of active property buyers are purchasing without a mortgage suggesting interest rate decisions are having far less impact on the housing market than headlines imply.
Research from Leaders Romans Group (LRG) found that 52% of buyers surveyed are cash purchasers – meaning Bank of England rate moves have little influence on their decision to move.
The findings come after the Bank of England held the base rate at 3.75% last week amid concerns the Iran conflict could push inflation higher and delay rate cuts, a decision that would normally be expected to dampen housing activity.
However, LRG’s Spring 2026 Sales Report, based on a survey of 307 buyers and sellers across England and Wales, suggests the current market is being driven by downsizers and equity-rich movers rather than heavily mortgaged buyers.
PURCHASE OUTRIGHT
Downsizers were the single largest group in the survey, accounting for 32% of buyers, many of whom are able to purchase outright after selling larger homes.
Even among buyers who do need finance, the research found most are already prepared, with 81% of mortgage borrowers having secured a Decision in Principle before making an offer.
The report also found that just 7% of respondents said interest rate decisions were a major factor in their plans, while almost six in ten expect to complete a move within six months.
LESS RATTLED
Kevin Shaw (main picture, inset), National Sales Managing Director at LRG, says: “Our research shows a market that is largely indifferent to rate movements; the buyers we’re working with have made up their minds, and they’re ready to move.
“We’re not seeing the Middle East conflict and its potential to delay interest rate reductions translating into any meaningful slowdown in agreed sales or new listings.
“For all the noise around inflation and geopolitics, plenty of people still want to move and, crucially, are willing to get deals done.
“The property market is considerably less rattled than some of the commentary around it. The BOE may have delayed its long-term objective of reducing interest rates, but our prospective buyers and sellers are not delaying their willingness to transact.”
