New data reveals that 27.3% of property sales in England and Wales fell through between July and September 2023. The figures from Quick Move Now indicate ongoing volatility in the UK property market.
According to the report, the majority of failed sales, 58.4%, were due to buyers either changing their circumstances or withdrawing offers.
Chain-break issues caused 25% of fall-throughs, while 8.3% collapsed due to mortgage difficulties. The remaining failures happened when sellers accepted higher offers from other buyers.
Danny Luke, managing director of Quick Move Now, said: “When you look at what’s happened to mortgage interest rates over the last few months, it’s little surprise that the biggest cause of failed property sales is the buyer experiencing a change in circumstances or getting cold feet.”
Luke also pointed out that fluctuations in mortgage interest rates added to the problem. “Many of those who made offers on properties in the second quarter, basing their budget on mortgage interest rates of below 5%, will have found that rates were more than 1.5% higher by the time their mortgage application was submitted. That rise in interest rates added hundreds of pounds to monthly mortgage repayments and meant that, unfortunately, some buyers had to pull out of the sale due to concerns about affordability.”
Chain-break was also a significant issue, impacting 25% of failed transactions between July and September. “In a slower property market, when one sale falls through, there is less hope of a new sale being tied up in time to keep a property chain together,” Luke added.
Despite some positive economic news, the property market remains uncertain. “Those without a strong need to move are still generally holding on and waiting to see whether interest rates and property prices will continue to fall,” said Luke.
