Fall throughs estimated to have cost estate agents £1.27 billion last year

Three in 10 property sales fell through before making it to the finish line last year – costing UK estate agents a whopping £1.27 billion, research estimates from Moverly reveals.

That’s the equivalent of 315,652 sales falling through during 2022.

And the digital property pack provider says that with the average estate agent earning £4,034 per transaction last year, based on the average house price of £284,100, combined with a typical agent fee of 1.42%, that’s a collective loss of fees totalling £1.27 billion due to fall throughs.

TRANSACTIONS

Moverly looked at just how many property transactions are thought to have collapsed over the last year and what this means in terms of the cost incurred for both estate agents and conveyancers.

Conveyancers typically make £2,239 per transaction when representing the buyer, or £1,069 for the seller.

As a result, Moverly estimates that conveyancers could have lost out to the tune of £706.7 million due to fall throughs in 2022, while those acting for sellers are thought to have lost £533 million.

STRESSFUL

Ed Molyneux, Moverly Co-founder, says: “When a home purchase falls through it isn’t just stressful for all involved, it’s a costly process that takes billions out of the pockets of agents and conveyancers.

“Even when property purchases go smoothly it still tends to be a long drawn out process, as the home needs to be listed, surveys need to be conducted and in many cases mortgage finance needs to be secured before buyers and sellers sign on the dotted line.

“This provides ample time in which circumstances can change, or both buyer or seller can have a change of heart, allowing frustrations to build across the chain.

“While estate agents can lower the chances of fall-throughs by being professional and efficient throughout, a proactive approach in securing the information required for a transaction upfront can also help minimise the chances of a fall through.”