Fall Throughs Plagued A Quarter Of Home Sales Last Year
A quarter of all housing sales last year in the English and Welsh property sector, were plagued by fall throughs prior to completion.
According to figures obtained by Quick Move Now, 28.21% of all housing sales fell through in the final quarter of the year raising 2019’s overall fall through rate to 24.42%.
Buyers changing their mind scuppered 34% of all failed housing transactions in 2019 and was the driving force behind 36% of fall throughs in the final quarter of the year.
As the Government prepare to trial reservation agreements over the months ahead, it is hoped that changes of heart will reduce when a financial penalty is imposed.
Similarly, gazumping was a blight on over a quarter (27%) of all failed transactions in the fourth quarter of the year and 10% of all fall throughs in 2019. A binding reservation agreement would also be triggered in this circumstance but with sellers set to secure thousands more, many fear this issue will continue regardless of regulatory intervention.
18% of buyers were unable to secure a mortgage last year after making an offer, 15% of sellers withdrew from the sale due to slow progress, 13% of sales broke down because of a break in the property chain and 11% of sales failed following issues arising from the property survey.
Danny Luke, Quick Move Now’s Managing Director, commented:
“2019 was another mixed year for the property market. Brexit and a general election created a significant amount of uncertainty, which undoubtedly had an impact on market confidence and led to some would-be buyers and sellers taking a ‘wait and see’ approach.
“Those who did choose to move forward with a sale or purchase were serious and committed to the sale – the annual fall through rate is the lowest we have seen since 2013 – but buyer and seller caution are still visible in the reasons given for unsuccessful sales.
“Post-general election, we expect to see a level of confidence return to the market over the coming year.”