Fall-throughs at their lowest since pre-pandemic boom

But analysis by House Buyer Bureau shows that the average cost of a fall through during the first quarter of 2023 increased by 2.1% versus Q4 2022.

estate agent fall-throughs

The number of fall-throughs continued to ease off during the first three months of the year to levels not seen since 2019, but are still costing buyers and sellers dear– £215.6 million during the first quarter alone.

Analysis by House Buyer Bureau reveals that the average cost of a fall-throughs during the first quarter of 2023 increased by 2.1% versus Q4 2022, now averaging £3,370 per transaction.

DISASTROUS

However, since September of last year and following a disastrous mini budget, the housing market has started to cool, with a notable drop in market activity from both buyers and sellers when compared to the previously hot market conditions spurred by the pandemic.

But the drop in activity means that just 63,970 transactions fell through during the first three months of this year.

This marks a 16% quarterly decline versus the final quarter of 2022 and the second consecutive quarterly decline since a market peak of 90,188 fall throughs seen in Q3 2022.

It’s also some 11% fewer fall throughs on an annual basis and, in fact, the total seen during Q1 2023 is the lowest since the first quarter of 2019, before the pandemic property market boom took off.

fall-throughs

A drop in the volume of fall throughs has also led to a reduction in their total estimated cost to the market. Despite the average cost of an individual fall through increasing, the total estimated cost of the 63,970 transactions to have collapsed during Q1 has dropped by 14% on a quarterly basis.

chris hodgkinson hbb solutions fall-throughs
Chris Hopkinson, HBB

Chris Hodgkinson, Managing Director of  House Buyer Bureau, says: “Market activity has been gradually declining since the closing stages of last year and we’ve seen these more subdued market conditions continue during the first quarter of this year.

“The individual cost of a fall through has actually increased and it’s also fair to say that while the total number of fall throughs is on the slide, current market conditions are ripe for an increased threat of a sale collapsing.”

Fall-throughs table


One Comment

What's your opinion?

Back to top button