31% of house sales fell through before completion in the third quarter of 2016.
The figures, released today by Quick Move Now, represent the first full quarter since the EU referendum on 23rd June.
Quick Move Now also released figures for the six month average fall through rate. This figure offers a greater overview and allows for seasonal peaks and troughs. It currently stands at 29.75%; a 4.57% increase since the end of the second quarter of 2016.
Danny Luke, Quick Move Now’s managing director, commented:
As the first full quarter since the results of the EU referendum, the figures from the third quarter offer an important insight into how Brexit has affected the stability of UK property sales.
Brexit has caused a great deal of uncertainty in the UK property market. This uncertainty can be seen in the fall through rate figures. A huge 44.44 percent of the sales that fell through did so because buyers changed their mind.
This is reflective of the anxiety and lack of confidence that are currently present in the property market. It also supports the verbal assessment that we’ve had from estate agents throughout the country, that many house sales collapsed as a result of buyers nervously pulling out of sales in the immediate aftermath of the EU referendum result.
As the initial shock of the EU referendum result is beginning to subside, I would expect to see a certain level of confidence return to the property market over the next quarter.
However, how long that confidence lasts will largely depend on how the process of managing our exit from the European Union progresses. With Teresa May recently announcing that Article 50 will be triggered by the end of March 2017, the market looks set to have a great deal more uncertainty to contend with over the coming year.
There were several other reasons cited for house sales falling through in the last quarter. These include;
- chain break
- selling to a new buyer for more money
- survey issues
- difficulties securing mortgage finance.
If you’re concerned about a property sale falling through, Quick Move Now could buy your house in as little as 7 days. For more information call: 0800 068 3366 or fill in the free, no-obligation estimate form.