Younger generations, including first-time buyers and growing families, are being disproportionately affected by the outdated homebuying process in England and Wales, according to research from Santander UK.
The report, Fixing the Broken Chain, produced with WPI Economics and JL Partners, revealed that more than 530,000 property transactions fail each year.
Among buyers aged 25 to 34, 36% have experienced a failed purchase, compared to 23% of the overall population.
The findings also showed the process is taking a toll on younger buyers’ wellbeing.
Almost two-thirds (61%) of 18 to 24-year-olds reported feeling frequently stressed during their home purchase, compared with 54% of all respondents.
As a result, 42% of 18 to 24s and 38% of 25 to 34s have considered delaying or abandoning plans to buy a home.
Santander warned that the complexity and inefficiency of the process are discouraging market activity at all levels.
A third of 55 to 64-year-olds and 36% of 64 to 74-year-olds said negative past experiences made them less likely to move, reducing housing mobility and limiting availability for younger buyers.
The report found widespread support for change: over three-quarters of under-35s said they would be more likely to move if the process were streamlined, while nearly half of older homeowners said the same.
David Morris, head of homes at Santander UK, said: “Buying a first home or moving to accommodate a growing family should be a moment of joy, but for too many young people it’s become an exhausting and uncertain ordeal that puts huge pressure on their finances and family life.
“We need to make it easier for people of all ages to buy and sell so we can get the market moving.”
Santander has urged the Government, regulators and industry to introduce reforms to modernise and simplify the system, including mandating digitisation across stakeholders, improving up-front information disclosure, creating a centralised property data system, discouraging gazumping and gazundering, and using artificial intelligence (AI) to improve data sharing and decision-making.
