One in Three transactions collapse before completion
New research has revealed that a third of UK buyers who had their offer accepted saw the transaction fall through prior to completion.
According to a Market Financial Solutions Survey, the likelihood of a sale collapsing is regionally dependent; for example, whilst just 15% of sales fall through in Scotland, London saw 61% fail.
The research also revealed that the most common reason for a collapse at 41%, was a breakdown within the chain, with mortgage delays in second place at 33%.
On average, each failed purchase costs a buyer around £2,899 in surveyor and solicitor fees, with the company stating that over the past decade, up to £10.7 billion has been lost in fees.
The survey follows the Government’s suggestion earlier this year to implement reservation agreements on a pilot basis in order to reduce the proportion of transactions which fall through. In their response to their ‘Call For Evidence – Improving the Home Buying and Selling Process’, reducing failed transactions was outlined as one of the key objectives, alongside reducing the time from offer to completion, and providing a better consumer experience.