Some 300,000 property transactions collapse every year costing vendors £2,700 on average or £400m a year, it has been revealed.
These costs include conveyancing fees, local search costs and subsequent lower offers on a property.
The shocking figures come from research by YouGov which also reveals that 20% of sellers experience a sale collapse, 12% incur costs of more than £5,000 and that six percent of all sales breakdowns are down to agents not being able to find a buyer.
But the vast majority – two thirds – of the deals that collapse are down to buyers pulling out because they find a better property or can’t get a mortgage before going to exchange of contracts. And 8% of failed sales were down to gazundering, YouGov says.
And while these problems may be regular fayre for agents’ sales progression departments, it is also taking its toll on the selling confidence in the market.
YouGov says a third of home owners are put off selling their home because they’re unwilling to face the horrors of a property chain breaking down.
Contained within the Annual Homeower Survey that the polling organisation carries out on behalf of the HomeOwners Alliance, the research also reveals that property transactions require six viewings on average to achieve a sale.
“The home selling system is so unreliable it’s deterring homeowners from selling – adding to the ongoing housing shortage crisis as a lack of suitable homes is one of the barriers to people moving up the property ladder,” says Paula Higgins, Chief Executive of the HomeOwners Alliance (pictured).
“Buyers need to have a little more skin in the game too. An earlier commitment – for example through reservation agreements – would go some way to avoiding these situations.”