- House sale fall through rate has increased steadily since March 2013
- Tougher mortgage rules have prevented purchasers borrowing as much as they anticipated they would be able to
- Increasingly, buyers are also nervous of a potential market crash
Quick Move Now’s market analyst, Donna Houguez, explains this further:
Quick Move Now is seeing two clear reasons for the upwardly moving fall through rate. Stricter rules imposed on borrowing by lenders as a result of the mortgage market review have resulted in buyers making offers, confident that they would be able to secure a mortgage and then realising that they were unable to, forcing them to pull out of sales. In August and September, the reason for sales falling through clearly changed, and it was the buyers themselves who became nervous. We saw a sharp increase in the number of buyers who had made a generous offer in order to secure a property against the competition change their mind and pull out amid fears of an imminent property market collapse.
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 quick sale company, 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.