The number of residential property sales falling through increased during the first quarter of 2026, creating additional disruption for estate agents and pushing the estimated cost of failed transactions to the UK housing market up by almost £21m, according to the latest figures from the House Buyer Bureau.
Analysis of TwentyCi data by House Buyer Bureau estimates that 67,489 property transactions collapsed between January and March, a 9.8% increase on the previous quarter. Despite the quarterly rise, the total remained 12.1% lower than in the first quarter of 2025.
For estate agents, the increase means more agreed sales failing to reach completion, resulting in additional time spent progressing transactions that ultimately do not complete.
The rise in fall-throughs pushed the estimated cost to the wider housing market from £218.3m in the final quarter of 2025 to £239.2m in Q1 2026.
House Buyer Bureau based its analysis on TwentyCi transaction data and updated estimates of the average cost of a failed sale, taking account of inflation, higher legal fees and changes in average house prices.
While the number of failed transactions increased, the estimated average cost per fall-through fell marginally. Sellers were estimated to lose £3,544 on average when a sale collapsed during the quarter, 0.2% less than in Q4 2025 but 2.1% higher than a year earlier.
The figures suggest that although the average cost of a failed sale changed little, the higher volume of collapsed transactions increased the overall financial impact on sellers, buyers and estate agents during the first three months of the year.
Chris Hodgkinson, managing director of House Buyer Bureau, commented: “After a significant reduction in fall-through activity at the end of last year, it’s disappointing to see the number of collapsed transactions move back in the wrong direction during the opening months of 2026.
“Whilst the average financial hit associated with a failed sale has remained broadly stable, it’s the increase in the number of transactions falling apart that is the real concern. Every fall-through represents wasted time, uncertainty, and additional expense for those involved, particularly sellers who often find themselves having to restart the process from scratch.
“The challenge is that many of the factors driving fall-throughs remain difficult to control. Affordability pressures, changing buyer circumstances, and wider economic uncertainty can all derail a transaction at the last minute.
“As a result, certainty continues to be a key priority for many homeowners. For a growing number of sellers, reducing the risk of a sale collapsing is becoming just as important as achieving the highest possible price.”
