The number of property transactions estimated to have been subject to collapse across the UK market has started to increase, according to the House Buyer Bureau.
The quick-buy property firm analysed the number of transaction fall throughs across the UK property market, what this means in terms of the average cost of a fall through and what the total cost to the property market is as a result.
The latest index reveals that the average cost of a fall-through during the second quarter of 2023 was £3,394, up from £3,355 in Q1.
At the same time, the estimated number of transactions that fell-through in Q2 hit 69,940, a 10.2% increase on the previous quarter.
As such, the total cost to buyers and sellers of fall-throughs in Q2 was an estimated £237.4m, up 11.5% compared to the Q1 total of £212.9m.
It is worth noting that current fall-through rates are still lower than they were this time last year.
The number of failed transactions is currently 10.4% lower than a year ago, while the total cost of fall-throughs is 5.9% lower.
The MD of House Buyer Bureau, Chris Hodgkinson, commented: “It was more or less inevitable that fall-throughs were due to climb this year and this increase has come at a considerable cost to the nation’s buyers and sellers at a time when finances are already stretched to breaking point.
“The market may have cooled in terms of transactional volumes, which has led to a reduction in fall throughs on an annual basis when compared to the heights of the pandemic boom. However, current market conditions are uncertain, to say the least, and many buyers have struggled with the increasing cost of borrowing which has forced them to reassess their position within the market.
“This has been a driving force behind the recent uptick in sales collapsing during the second quarter of the year and the best way to bypass this property disappointment is to secure a cash buyer as the dangers of a fall through are dramatically reduced. This is easier said than done though, as our recent research found they have accounted for just 31% of sales across Britain in the last year.
“The good news is, that with the Bank of England finally choosing to freeze rates last week, we should see a greater degree of stability return to the market during the closing stages of this year.”
Surely the more important figure is the percentage of transactions that are falling through relative to total number of transactions proceeding. Naturally as more sales are agreed a higher number will fall through. Basic maths really.
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register
How about telling us why they fall through? It would have more meaning and point us in the direction of what could help. Its another load of worthless stats, I’m know wiser. So to speculate, majority are from sales that were never sales because the buyer can’t arrange the finance, meaning a lot of wasted time, expectations and costs for several people?
Remedy: A sale isn’t a sale until finance is confirmed and arranged. I see so many running before they have learnt to walk sales.
No doubt there are other factors with some cases, poor valuations, bad survey, contract issues, unstable employment, vendor can’t find alternative home etc, tec ….. the list goes on which raise that old chestnut of HIP’s which didn’t really solve. Back to learn to walk!
You must be logged in to like or dislike this comments.
Click to login
Don't have an account? Click here to register