Property cash buyers at record high, Nationwide says

Nearly four out of 10 homes were sold without the need for a mortgage in the first quarter of the year - a record high, the Nationwide has said.

The building society - the UK's second biggest mortgage lender - said that 38% of properties were sold to cash buyers.

It said that low interest rates had encouraged investment in bricks and mortar, while mortgage lending had been squeezed in recent years by the banks.

It also said that UK house prices in May were 4.6% higher than a year ago.

This was a slowdown from the 5.2% annual rate of increase recorded in April.

Nationwide said this marked a resumption of a "gradual downward trend" in annual price growth which had begun last summer.

However, prices in May were up 0.3% compared with April, taking the average price of a property to £195,166.

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