Housing deals that fail to complete erode stamp duty revenues and commission
Failed housing transactions in England are estimated to be draining more than £900 million a year from the economy in lost stamp duty receipts and estate agency commission, according to new analysis from property listing platform Rightmove.
Based on 1.03 million housing transactions in England last year, an average stamp duty bill of £7,590 and a typical estate agency commission of 1.5%, the analysis suggests that around 6% of sales collapse and do not return to the market within 12 months.
On these assumptions, nearly £392 million in potential estate agency commission and about £515 million in stamp duty revenue for the government are not realised.
Separate estimates for Scotland and Wales, which reflect differing land tax regimes and a lower fall-through rate in Scotland, indicate a further economic opportunity of almost £7 million in Scotland and £23 million in Wales if failed deals can be reduced.
The data also underline the scale of instability within property chains. Around 6% of transactions fall through and do not reappear within a year, while a much larger proportion – about 23% – fall through before eventually completing.
For estate agents, this means delayed or lost commission and additional work to keep chains together. For homebuyers and sellers, it can lead to duplicated professional fees, extra mortgage and valuation costs, and extended uncertainty around planned moves.
Rightmove, which carried out the analysis, argues that greater digitisation and better coordination of the home-moving process are central to cutting the number of failed sales. It notes that the typical time from offer to legal completion last year was about five months, leaving a long window in which transactions can break down.
In its response to the government’s consultation on reforms to the home-buying process, which closed at the end of 2025, Rightmove said that more digital processes are needed to improve efficiency, transparency and consumer confidence. The consultation highlighted examples from countries such as Norway, Finland and Estonia, where home-moving is underpinned by more digital conveyancing and data-sharing.
Rightmove also indicated that more comprehensive upfront information, presented in a consistent format at the point of listing, could help to reduce fall-throughs and support agents tasked with managing lengthy, multi-link chains.
“Our analysis highlights the scale of the economic opportunity if fall through rates can be reduced,” said Johan Svanstrom (pictured right), chief executive of Rightmove. “More than one in five transactions are affected by fall throughs, costing agents either lost or delayed fees and leading to some home-movers paying thousands in repeat costs.
“We believe that further digitisation can help to bring this number down. Addressing it will require government investment, innovation across the transaction process, and stronger industry collaboration.
“The home moving journey is still slowed down by many manual and fragmented processes. A seller shouldn’t need to list their home in April to move before Christmas.
“We believe a more effective system and increased mobility would add to overall economic growth in the UK.”
Mary-Lou Press, president of industry body NAEA propertymark, echoed Svanstrom’s call for reform.
“While fall-throughs can never be eliminated entirely, many are preventable with better upfront information, improved communication between parties, and a more streamlined and digitised transaction system,” she said.
“We support measures that promote greater digitisation, earlier provision of material information, and stronger collaboration across the sector.
“However, reform must work for consumers and practitioners alike, ensuring the system is both efficient and robust. Reducing fall-throughs will not only strengthen consumer confidence but also unlock significant economic potential across the country.”
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