Property transactions are progressing far more quickly in northern England than in London, with new data revealing a sizeable regional divide in the time taken to reach exchange.
TwentyEA figures show 58.4% of transactions in the North East reach exchange within three months. That makes it the fastest English region in the analysis.
Yorkshire and The Humber follows closely at 55.6%.
The East Midlands stands at 50.4%, followed by the West Midlands at 49.9% and the North West at 47.6%.
London sits firmly at the other end of the table.
Just 31.1% of transactions in Outer London reach exchange within three months. The figure for Inner London is 35.4%.
That leaves a 27.3 percentage-point gap between the North East and Outer London.
The figures come from TwentyEA, part of the TwentyCi Group, and feature in its latest Property & Homemover Report.
Scotland moves considerably faster than England, although its property transaction system differs. Some 72% of sales agreed in Scotland reach exchange within three months.
Nick Huntley, director of TwentyEA, said: “The regional divide is striking, with sales in the North East and Yorkshire and The Humber progressing much faster than those in London.
“Differences in property type, transaction chains and the profile of buyers and sellers are all likely to play a role, demonstrating the significant bearing geography can have on how quickly a transaction progresses.
“With Scotland outperforming England by a country mile yet again, the figures highlight the shortcomings of England’s slow and stagnant legal system, which is why we’ve welcomed the government’s reforms.”
Cheaper homes move faster
TwentyEA also found a clear relationship between property value and the time taken to reach exchange.
More than half – 54.2% – of transactions involving homes priced below £200,000 reach exchange within three months.
That falls to 48.4% for properties between £200,000 and £350,000.
For homes priced between £350,000 and £1m, the proportion drops to 39.8%. Just 38.2% of £1m-plus transactions reach exchange within the same period.
The gap remains substantial after five months.
By then, 75.6% of sub-£200,000 transactions have reached exchange. That compares with 58.3% of sales involving homes worth £1m or more.
At the £1m-plus end of the market, 8.1% of transactions take seven months or longer. For properties below £200,000, the figure is 3.3%.
Huntley said: “Lower-priced properties carry their momentum through to exchange more effectively.
“With a broader pool of buyers at the more affordable end of the market, these sales may be better placed to progress quickly, particularly with a higher proportion of agile first-time buyers who have no property to sell.
“Higher-value transactions can be more exposed to changes in financing, affordability and buyer circumstances, alongside additional considerations around original listed features, land boundaries and other complexities commonly associated with properties at the upper end of the market.”
Leaseholds lag behind freeholds
Tenure also has a significant bearing on transaction times.
TwentyEA found that 46.4% of freehold transactions reach exchange within three months. That compares with 34.9% of leasehold sales.
After four months, 59% of freehold transactions have exchanged compared with 47.3% of leaseholds.
By five months, the figures stand at 70.4% and 60.4% respectively.
The gap largely disappears by six months. At that point, 96% of freeholds and 94.3% of leaseholds have reached exchange.
Leaseholds are also more likely to take seven months or longer. Some 5.7% fall into this category, compared with 4% of freehold transactions.
Huntley added: “The figures highlight the additional time that can be involved in buying and selling a leasehold property.
“With more parties and paperwork often at play, leasehold transactions can be more challenging, which may contribute to the gap in exchange times compared with freehold homes.”
