Property transactions are elongating between SSTC and completion according to Landmark Information Group’s latest report on the property market.

Its latest Property Trends report for April, May and June this year shows that the number of transactions moving to completion is down 11% on the same period in 2019 and 7% on average compared to the first three months of this year.

Landmark says this is a sign that buyer confidence is being hit by cost-of-living pressures and higher interest rates, a situation made worse by long transaction times and expired mortgage offers.

Tellingly, Landmark also says the ratio of valuations per offer has risen by 15% in the first five months of 2022, compared with the same period in 2019, indicating that false starts are now on the rise.

Emboldened

Sellers are, in the meantime, increasingly emboldened by rising property prices as they seek the best offer possible to fund their onward purchase. This is further contributing to the elongation of chains dragging out.

“Whilst the property market is stable across much of the transaction chain, we are starting to see the friction between buyer hesitancy and seller bullishness on price being played out in completion rates – already struggling due to inefficiencies and disconnects across the transaction process,” Simon Brown, CEO, Landmark Information Group (pictured).

“With buyers increasingly mindful of cost-of-living pressures and higher interest rates, there needs to be stronger confidence in the transaction process itself.

“Home-movers have to be able to trust that a transaction will run smoothly – at the moment the fragility of the system creates real risk of chain collapse for those wanting to move within a reasonable timeframe.”