The number of house sales falling through before completion has dropped dramatically , 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 23.1 per cent for the second quarter of 2018, a fall of 15.7 percent from the record high 38.8 percent for the first quarter of 2018.
Quick Move Now also releases year-to-date figures and six-month average figures, to take into account seasonal peaks and troughs, and both figures have seen a fall in the number of sales failing to complete. The year-to-date figure has dropped from 29.9 percent to 28.8 percent, while the six-month average figure has fallen from 33.8 percent to 30.5 percent.
Danny Luke, Quick Move Now’s managing director, commented:
The start of 2018 was challenging for the UK property market. Political and economic uncertainty left many homeowners and would-be buyers feeling nervous. The end of 2017 saw London house prices drop for the first time in eight years, and the resulting nationwide market caution heavily contributed to the highest first quarter property sale fall through rate in a decade.
The second quarter has been much more positive, as the market starts to settle and buyer confidence begins to return.
Last year, we saw a second quarter fall through rate of 26.0%. This has fallen to 23.1 percent in the second quarter of this year, so the figures are looking more positive all round.
Of the property sales that were unsuccessful, 58 percent were attributed to the buyer changing their mind or the seller pulling out after receiving a higher offer. Other reasons for unsuccessful sales include problems securing mortgage finance (12 percent), chain collapse (12 percent), seller pulling out of the sale because they felt it was not progressing quickly enough (12 percent) and collapsed sale after a negative survey report (6 percent).