Fall-throughs ‘set to drop to one in 20’ under Government reforms

The Government’s reforms to the homebuying system will cut property deal fall-throughs to just one in 20, according to new analysis.

A study of 500 transactions found that fewer than 5% would collapse in practice once the changes are implemented.

Faster transactions

A major overhaul of the homebuying system designed to speed transactions up and prevent fall-throughs, was announced in June.

The Government said the changes would cut buying times by four weeks, and save first-time buyers an average of £650.

New sales packs, earlier binding agreements, and digital tools would halve the number of sales that fall through, it was claimed.

System pressure

Now, lawtech firm Conveyo found very few sales fell through in its research, with freeholds reaching exchange in around 30 days and leaseholds in around 45.

Figures released in May by the Open Property Data Association (OPDA) showed fall-throughs were hitting more than half of property deals (58%) after an offer was accepted.

Conveyo says pressure on the current system is growing as more than 2,000 conveyancing solicitors have left the sector since 2022, while the time from listing to completion has reached 211 days.

Remove repetition

Chris Grant, LawtechUK panel member and MD Client Value at solicitors Goodwin (pictured), says: “Earlier, better structured information can help identify problems before they hold up a property transaction, while automation can remove repetitive work and allow lawyers to concentrate on the decisions that require their professional judgement.

“We have an opportunity to look at evidence from successful British lawtech companies and understand what works, where the risks are and what needs to change if successful approaches are to operate at greater scale.”