Spring is typically the time that we see a rise in activity in the property market and spring 2014 has been no exception. However, the latest data from the UK’s leading residential property buyer also shows an unprecedented year on year rise in the percentage of house sale fall throughs.
Quick Move Now’s fall through index for March stands at 27%, showing that over a quarter of sales fail to complete, a 63% increase compared with March 2013.
Donna Houguez, Market Analyst at Quick Move Now, commented:
It isn’t surprising that as buyers are rushing to make purchases before prices increase further, a higher proportion of those sales are falling through. However, it’s interesting to see that the reason for sales falling through has shifted dramatically in the last quarter. Since the property market crash in 2007, although the fall through rate has changed, the main reason sales failed to complete has remained solid – the inability to secure mortgage finance. Now that has changed.
The majority of sales falling through do so because of issues on the seller’s side – they either receive a better offer or they experience problems within their own chain. This is a major step-change and shows us that we have moved definitively into a sellers’ market.
Data calculation: Quick Move Now sells hundreds of properties each year and the fall through statistics are calculated month-on-month using a six-month average. In reality, the fall through rate for homeowners would be approximately 10 – 15% higher as Quick Move Now has a professional resale team proactively managing the completion process
Quick Move Now provides data to a wide range of property market analysts, including the Bank of England
Founded in 1998, Quick Move Now is the UK’s leading buyer of residential property, offering a quick, secure and hassle-free house sale. Our experienced team, efficient processes and substantial cash reserves allow us to make immediate purchases, enabling vendors to sell their houses quickly and move on with their lives.