The number of house sales falling through before completion is on the rise, according to figures released today by the UK’s largest independent home buyer; Quick Move Now.
Figures indicate a house sale fall through rate of 38.8 per cent for the first quarter of 2018, which is the highest Q1 rate seen in the last ten years.
First quarter fall through rate percentage 2008-2018:
|Year||Quarter 1 – Fall Through Rate %|
Danny Luke, Quick Move Now’s managing director, commented:
The start of 2018 has been difficult for the UK property market.
Although we can attribute some changes in the fall through rate to the usual seasonal peaks and troughs, ongoing Brexit uncertainty and strict lending criteria are certainly contributing to increased market caution and fewer successful property sales.
Shortage of supply also remains an issue in many areas. This means those that are keen to move, or have no choice, find themselves in a very challenging market.
Of the property sales that were unsuccessful, 46 per cent were attributed to the buyer changing their mind or the seller feeling that the sale was not progressing quickly enough. A further 23 per cent fell through because either the buyer or seller wanted to renegotiate after the initial deal had been agreed, and more than one in ten of the sales that fell through did so because the property survey highlighted issues that caused the buyer to pull out of the sale.
Strict lending criteria is also playing a role, with 11.5 per cent of sales that fell through doing so because the buyer was unable to secure sufficient funding from their mortgage provider.
The remaining 8 percent of failed house sales were the victim of a collapsed property chain.
Data Calculation: Quick Move Now buy and sell hundreds of properties each year and the fall through statistics are calculated month-on-month, quarterly and annually.