Stressed homemovers

Property chain delays continue to frustrate homemovers, research finds

Thousands of homemovers were hit by costly and frustrating delays in property chains, according to research by lender Together. 

The study found 60% of UK homeowners had been caught up in a property chain when buying a home, with a quarter delayed in the last five years. 

Together said these delays left people feeling trapped and out of pocket, while also causing problems for first-time buyers and the rental market.

With 618,000 households moving last year, the research suggested there could have been around 49,000 property chains in just 12 months. 

More than half of people currently stuck in a chain said they had been put off making offers on other homes, and 66% said the experience was more stressful than saving for a deposit. 

Nearly 60% said they had been tempted to walk away from buying altogether.

Together’s research showed the largest group of buyers waited between two and three months for completion, but 7% were waiting four to five months, and over 5% were stuck for six months or longer. 

The lender also highlighted that the average time between agreeing a sale and exchanging contracts is now 109 days, up 65% from 2007.

More buyers and sellers are now turning to bridging loans to break property chains. 

A quarter of those who used bridging loans said it helped them get out of a chain and secure their home. 

However, the research found that more education is needed about how bridging loans work. 

Of those currently in a chain, 59% said they would consider bridging finance if it would guarantee breaking a chain.

Ryan Etchells, chief commercial officer at Together, said: “While a common occurrence, maddening property chains can ramp up the costs involved with buying a home, and adding to the emotional stress and admin that home movers have to deal with. 

“Our property market is broken and needs a thorough overhaul; we must take steps to address it.

“This is why it’s important to increase the awareness of simple solutions like bridging as a significant portion of potential buyers and sellers simply aren’t aware of how beneficial these loans can be.”

Etchells added; “Whether to break out of a time and money draining property chain, to help fund renovations or for buying at auction; this type of financing can be quickly accessed and help people move forward with their property plans now and in the future.”

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