Nearly a third of house sales fell through before completion during the third quarter of the year, continuing an upward trend that has been ongoing since the start of last year – and that’s being blamed on Brexit.
The figures come from ‘fast sale’ home buying firm Quick Move Now, which says the number of sales falling through before completion has increased from 26% to 28% compared to the previous quarter, and up from 20% at the beginning of 2016.
It blames the rise in fall-throughs on a “turbulent year” for the UK property and in particular external factors such as the EU referendum and the triggering of Article 50 for “all playing their part in the fall through rate”.
Quick Move Now, which researched transactions in England and Wales only, says the most common reason for sales falling through is when sales progression grinds to a halt and buyers simply find somewhere else, following by lenders refusing credit after an offer has been made.
Buyers trying to renegotiate the agreed sales price after its been agree was the third most common reason, followed by buyers simply changing their minds about a property, followed by survey problems.
“As we reflect on Q3, it’s clear the UK property market is still full of uncertainty and instability,” says Quick Move Now’s Managing Director Danny Luke (pictured, left).
“Looking at the reasons behind the fall-throughs for Q3, nearly 63% occurred due to hesitation on the buyer’s part.
“These reasons behind the house sale fall-throughs would indicate a complete lack of confidence from buyers.
“Nearly every day, the media is reporting a property price slow-down across the UK. And with many property experts predicting this downward shift to continue as we go into 2018, I would expect buyers to become even more apprehensive in the short term.”