Housing Chains Increasingly Stifling Transaction Completions
Over half of all property transactions are now trapped in a chain.
According to proptech company View My Chain, 55% of all transactions are struggling with the pressure of being involved in a chain.
The research further found up to 20 separate stakeholders to be involved in some transactions with many of these key property service suppliers completing the process with incomplete knowledge.
Those in a chain were also three times more likely to suffer from a collapsed transaction because of the poor communication and lack of holistic or shared truth.
Public confidence in the home buying and selling process is currently low with almost a third (31%) of home owners experiencing a home sale falling through in the last ten years, according to data from Market Financial Solutions.
39% of those who experienced fall throughs were also liable for paying intermediaries for their services despite the sale falling through before completion.
Increased competition and uncertainty would also drive potential buyers into extremes with 43% prepared to gazump rival buyers if it meant they could purchase their ideal home.
Sohail Rashid, Founder of View My Chain, said:
“Our data shows that the average chain size is three properties and that in some cases you can have 20 different suppliers involved in the transaction.
“It’s still intriguing how online case tracking is still described as an additional service in the home buying and selling process.
“You can order a low value item such as taxis and books with mobile tracking and updates around dispatch, delivery times and arrival. The fact that most consumers are given no accessible tracking of the purchase or sale of their home is shocking.”
Paresh Raja, Chief Executive of MFS, said:
“With demand for UK property constantly high, the process of buying a home has become incredibly competitive. As a result, a significant number of UK homebuyers are losing out on deals at the critical closing stages.
“Not only is gazumping a cause for frustration and disappointment, it also can incur significant costs to the prospective buyer.
“Avoiding complicated chains and having immediate access to finance can reduce the chances of a prospective buyer missing out on a purchase, but it’s clear from MFS’ research that further measures are needed to prevent gazumping in England and Wales.
“In the aftermath of the general election, let’s hope the elected government looks at measures to stamp out gazumping as a top priority.”