The fall through rate for house sales in March was just over 30 per cent, according to Quick Move Now, remaining broadly similar for the last three years but double the rate at which house sales fell through in 2006.
Market Analyst for Quick Move Now, Donna Houguez, comments:
“The fall through rate in March 2006 at the peak of the market was 13.60%, compared to 30.03% in March 2012; the chance of a house sale falling through is currently more than double what it was in the same month six years ago, which shows just how difficult it has become to retain a buyer until completion. It is unlikely that the market will recover to the more manageable 2006 levels in the near future.
The longer the chain of people involved in a house sale, the higher the chance of fall through. Even if a vendor’s direct buyer is in a strong position for exchange and completion, the financial situation of other buyers further down the chain can cause problems.”
Having a buyer further down the chain with financial issues is not a new problem but, back in 2006, finding a new buyer was relatively quick and easy. Now, with the constraints on mortgage lending, buyers are not so easy to come by and holding a chain together has become doubly important.
Unfortunately for the seller no amount of quick thinking or acting by a conveyancing solicitor can keep a transaction together if the problems relate to mortgage finance. It would be interesting to see what the rise in fall through cases was attributed to.
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