More than half of property sales fell through in the first quarter of this year, with 55.8% of sales in England and Wales collapsing before completion, according to data from Quick Move Now. The property market faced ongoing uncertainty, impacting buyers and sellers alike.
The top reason for failed sales, accounting for 29%, was buyers changing their minds about the property.
Legal issues or survey report concerns led to 25% of failed sales, while other factors included chain breaks, difficulties securing a mortgage, slow sale progress, and miscellaneous causes.
Danny Luke, Quick Move Now’s managing director, commented on the market’s challenges: “The first quarter of this year was very challenging for the property market, as it struggled to recover from the turbulence of 2022.
“There has been a huge amount of uncertainty, which is reflected in the number of property sales that have fallen through.”
Luke also addressed the impact of new mortgage rates on the market: “One-in-eight failed sales in the first quarter of this year were attributed to difficulty securing a mortgage, as buyers struggle with higher mortgage interest and impacted affordability.”
He expressed optimism for a more settled market in the second quarter, as mortgage interest rates stabilise and demand for property remains strong in many areas. Although prices and volumes are unlikely to return to 2021 levels, Luke believes the market will find a new rhythm, leading to greater stability and health later this year.
