According to new figures from Quick Move Now, over 40% of property sales fell through before completion in the third quarter of the year.
This figure marks a 9% increase in failed sales over the past three months.
Of the sales that collapsed, 41% failed due to buyers changing their mind about the purchase and a further 24% failed when the buyer was unable to get a mortgage, suggesting a growing caution from both buyers and lenders.
Danny Luke, Quick Move Now’s managing director, said: “It’s concerning to see that the number of property sales falling through before completion seems to be on the rise again.
“It is, however, not a huge surprise given the current turmoil in our economy.
The research also reveals that a staggering 18% of cases that fell through cited either the buyer or seller pulling out due to slow progress.
Moreover, 12% pulled out following issues with the property survey.
Luke added: “It would be naïve to think that the economic climate we now find ourselves in would not heavily impact the confidence of both buyers and mortgage lenders.
“Rising inflation and interest rates will have a huge impact on affordability, and anxiety is rising rapidly.
“Just last week we witnessed the removal of 40% of mortgage products from the market and saw a growing number of predictions of a crash.
“It’s little surprise that the biggest causes of failed property sales in the last three months have been buyers changing their minds and difficulty securing mortgage finance.”
