Fall-throughs in the property market are increasing, driven by a recent uptick in market activity and the approaching Stamp Duty deadline, analysis by GetAgent.co.uk found.
Quarterly data showed peak activity in Q3 2022, with 337,730 sales completed and 90,188 fall-throughs, the highest since early 2018.
However, sales volumes dropped to a low of 227,390 in Q1 last year, resulting in a decrease in fall-throughs to 64,865.
With the property market recovering in 2024, transaction levels increased to 296,640 in Q3, prompting an estimated rise in fall-throughs to 84,079, the highest total since Q3 2022.
Colby Short, co-founder and CEO of GetAgent.co.uk, said: “Fall throughs are an unfortunate reality across the property market and despite the endeavours of the industry to limit their propensity, estate agents will inevitably see a great deal of hard work wasted due to transactions failing to complete.
“The busier the market the higher the number of fall throughs that tend to occur, and so with the rush now on to beat another stamp duty deadline, there’s a good chance that fall through numbers will continue to rise over the first quarter of this year.
Short added: “The good news is that the impact of this stamp duty countdown is forecast to be marginal due to the far shorter timeframe buyers have in which to benefit, especially when compared to the initial stamp duty holiday and the prolonged period during which the market was overheating.
“So whilst we may well see transactions and fall through numbers climb before a market correction follows in Q2, it’s likely to have a minimal impact in the grand scheme of things and it’s unlikely to destabilise a property market that has been going from strength to strength for some months now.”
