Britain’s housing chains are paralysing the market and adding to pressures on the rental sector, according to new research by specialist lender Together.
The lender’s survey found that 60% of homeowners had experienced being stuck in a chain, with almost a quarter caught in delays in the past five years.
Based on the most recent English Housing Survey, that could mean as many as 49,000 chains last year alone.
Together’s findings reveal the depth of frustration. Two-thirds of movers said chains were more stressful than saving for a deposit, while more than half of those currently affected have been deterred from making further offers. Six in 10 admitted they had considered abandoning their purchase altogether.
MOVING DELAYS
Most movers reported waits of two to three months to complete, but some were delayed four to five months and more than 5% for six months or longer. Industry figures show the average time from sale agreed to exchange has stretched to 109 days – 65% longer than in 2007.
Together warned that lengthy chains are not only leaving buyers and sellers trapped but also clogging up the market, preventing first-time buyers from moving on to the ladder. This in turn increases demand on the rental sector, already under strain from low supply.
FRUSTRATED MOVERS
The lender also pointed to a growing number of frustrated movers turning to bridging finance to break out of chains.
A quarter of those who had used bridging loans said they enabled them to complete their purchase, and 59% of those still stuck said they would consider them if it guaranteed progress.
Ryan Etchells, Chief Commercial Officer at Together, says: “While a common occurrence, maddening property chains can ramp up the costs involved with buying a home, and add 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.”
