Over half of buyers and sellers affected by failed transactions
More than half of property buyers and sellers in the UK have experienced a collapsed property chain, according to new research by specialist property lender Together.
The findings highlight the widespread disruption caused by failed transactions, with many affected facing temporary homelessness, increased costs, and missed opportunities to secure their preferred homes.
Together’s analysis, based on the latest English Housing Survey, estimates that 618,000 households moved in the past year, suggesting there may have been as many as 49,000 property chains during that period. Of those surveyed, 54% reported being involved in a property chain that ultimately collapsed.
The research also found that 38% of respondents had experienced multiple chain failures. The most common reasons included buyers withdrawing (14%), sellers themselves pulling out (11%), and conveyancing issues (12%). In addition, 17% said they had encountered a buyer pulling out on one occasion.
Despite the frequency of chain collapses, only 10% of those surveyed said they had used or would consider using bridging finance to address the issue.
The study comes as industry stakeholders push for a reduction in the average time taken to complete a house sale to 28 days, aiming to address stagnation in the housing market.
Commenting on the findings, Ryan Etchells (pictured right), chief commercial officer at Together, said: “The property chain problem is a symptom of a housing market not currently fit for purpose. Our research highlights the scale of the problem and how it leaves very few unaffected. But beyond the numbers we must also consider the financial impact on buyers and sellers of collapsed chains, as well as the emotional toll this can have when trying to get on the ladder in a high cost climate.
“Though the government has acknowledged the issue, the fix will be long-term given the structural nature of the problem. Being as informed as possible of all the options available when dealing with property chains is key.
“Few are considering bridging finance for example - a very useful tool for either escaping from housing chains quickly or avoiding them altogether. Until the underlying causes of broken housing chains is addressed, short-term creative solutions will continue to be the best recourse for buyers and sellers.”
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