Fall-throughs were estimated to have cost estate agents £1.27bn in 2022, according to research from digital property pack provider Moverly.
Moverly looked at how many property transactions were thought to have collapsed over the past year, and what this meant in terms of the cost incurred for both agents and conveyancers.
An estimated 31% of transactions fell through in 2022, equating to 315,652 failed sales.
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%, this amounted to a collective loss of fees totalling £1.27bn.
Ed Molyneux, co-founder of Moverly, said: “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.”
He added: “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.
“In this respect, utilising digital property packs can help agents complete up to 70% quicker while benefiting from a significantly lower fall through rate which not only keeps the customer happy, but reduces their financial losses.”
