Buyers and sellers are facing an increased risk of fall throughs, it has been claimed – despite a drop in cases this year.

New figures reveal there was a reduction in the number of fall throughs in the first quarter of 2023 with 63,970 collapses – the lowest quarterly figure since 2019.

Despite this, market conditions are ‘ripe for an increased threat of a sale collapsing’, the House Buyer Bureau has warned.

The company calculates that fall throughs cost homebuyers and sellers £215.6m in the first three months of the year, the lowest quarterly total since Q4 2021. However, the average cost of a fall through has increased by 2.1% from Q4 2022, now standing at £3,370 per transaction.

But a cooldown in housing market activity since the end of 2022 following the mini budget and more subdued conditions mean the chances of fall throughs are high, House Buyer Bureau added.

Chris Hodgkinson, House Buyer Bureau’s managing director, said: “A silver lining to this notable reduction in sales volumes has been a consequential drop in the number of transactions collapsing and this, on the face of it, is a positive.

“However, the individual cost of a fall through has actually increased and it’s also fair to say that while the total number of fall throughs is on the slide, current market conditions are ripe for an increased threat of a sale collapsing.

“Buyers are offering less, sellers are standing their ground, we’ve seen multiple interest rate hikes spur lenders into increasing rates and transactions are taking far longer to complete.

“All of these factors can increase the chance of a fall through and so while total numbers may be down, buyers and sellers should remain aware of the threat and do all they can to negate it in order to reach the finish line.”

Figures from House Buyer Bureau also revealed that although the average cost of a fall through has risen, the total estimated cost of the 63,970 collapsed transactions in Q1 2023 was down some 14%.