Difficulty in securing a mortgage was the top reason for failed property sales in Q1 2025, with nearly a third of sales falling through, according to data from Quick Move Now.
Research found that 32% of sales fell through, and 35% of those were due to mortgage troubles.
Other reasons included buyers changing their minds because of the amount of work required or survey results (26%), changes in buyer circumstances (17%), unsuccessful attempts by buyers to renegotiate the price (13%), sellers accepting higher offers (5%), and chain breaks (4%).
Danny Luke, managing director at Quick Move Now, said: “News about mortgages has been largely positive recently, so the public may be surprised to hear that people are struggling to get mortgages.
“However, growing global political and financial uncertainty are undoubtedly having an impact on mortgage lenders’ appetite for risk.
“It’s difficult to predict what will happen to interest rates, inflation and employment rates in the short to medium term, and therefore lenders are wise to exercise increased caution in assessing the risk associated with each mortgage application.”
Luke added: “The data also suggests that it is not just lenders who are cautious, with the second most common reason for failed sales being the buyer deciding the property requires too much work.
“With finances increasingly squeezed, buyers are having to let their heads rule their hearts and make wise financial decisions about where to invest their money.
“This is also evidenced by 17% of failed sales being attributed to buyers unsuccessfully attempting to renegotiate the purchase price.”
He said: “There is reason for hope, however, as it seems there is strong demand for desirable properties.
“Our data shows that 5% of failed sales were attributed to the seller pulling out after receiving a higher offer.
“This suggests buyers are not shy about making an offer on the property they want, even if it’s already under offer.”
