What Does a Cash Buyer Actually Pay? (2026 UK Figures)

The short answer

Most reputable UK cash-buying companies pay between 75% and 85% of open-market value. Any firm that promises "100% of market value in 7 days" is either not really a cash buyer, or the number will be reduced sharply later in the process.

How a cash-buyer offer is built

A cash purchaser works backwards from what they can sell the property for after light refurbishment, minus their costs and required margin:

1. Estimated resale price (comparables, PropertyData, sold prices on the same street)
2. Less refurbishment budget (usually £8–25k for a typical terrace or semi)
3. Less holding costs (council tax, insurance, utilities, finance) — typically 1–2% per month
4. Less selling costs (agent fee 1%, legal fees, stamp duty on the original purchase)
5. Less required margin (usually 12–18% net)

The number that falls out of that model is the offer.

Worked example: £220,000 mid-terrace

| Item | £ | | --- | --- | | Expected resale after refurb | 230,000 | | Refurb budget | -15,000 | | Holding + selling costs (6 months) | -9,000 | | Stamp duty on purchase | -6,000 | | Required margin (~15%) | -22,000 | | Cash offer | ~178,000 |

That's roughly 81% of the current £220k open-market value.

The true net comparison

An estate-agent sale looks better on the sticker but rarely nets what people expect:

| Line | Estate agent | Cash buyer | | --- | --- | --- | | Sale price | £220,000 | £178,000 | | Agent fee (1.2% + VAT) | -£3,168 | £0 | | 5 months council tax + bills | -£2,000 | £0 | | 5 months mortgage interest | -£3,000 | £0 | | Chain-collapse risk (~30%) | material | none | | Net in bank | £211,832 | £178,000 |

The real gap in this example is around £34,000, or ~15% — significant, but far less than the "you'll lose 25%" headline you may have read. For sellers on a deadline, that gap is the price of certainty.

When a cash buyer makes financial sense

• Empty probate property burning £600–£1,500/month in bills and council tax
• Repossession or serious arrears where every month adds interest and fees
• Non-standard construction (concrete, wimpey no-fines, timber-framed pre-1965) that most residential lenders will not touch
• Short-lease leaseholds (< 80 years) that trigger marriage value
• Serious structural issues, subsidence history, damp, Japanese knotweed
• Divorce settlements with a court deadline

Red flags that the "offer" isn't real

• The initial offer is close to full market value ("we'll pay £215,000 for your £220,000 house in 10 days") — this will be reduced after the survey
• No written offer within 48 hours
• Pressure to use a specific solicitor without offering a free choice
• Any request for upfront money