More than half of UK house sales are collapsing after an offer has been accepted, with the resulting wasted fees, delays and lost productivity potentially costing the economy almost £2bn a year, according to new research from the Open Property Data Association (OPDA).
The research found that 58% of property transactions fall through after the offer stage, highlighting what the organisation describes as deep-rooted structural problems within the home-buying process.
With around 1.2 million residential transactions taking place annually and the average failed transaction costing buyers and sellers an estimated £2,830 in direct costs and lost time, OPDA estimates the total annual economic impact could reach £1.97bn.
The study, based on a survey of 5,000 recent home movers, found the average failed transaction wastes around three months. One in six collapses after four months, while one in ten falls through after five months or more.
DELAYED PLANS
Emotional stress was cited as the biggest impact by 43% of respondents, while 41% said their moving plans were significantly delayed.
Older movers appeared hardest hit emotionally, with 59% of those aged 55 and over reporting high levels of stress following a collapsed transaction.
Maria Harris (main picture), Chair of the OPDA, says: “These figures lay bare a housing market that is failing consumers at every stage.
“Far too many transactions collapse because crucial information only comes to light weeks or even months after an offer is made.
“By then, buyers and sellers have already invested significant time, money and emotional energy.
“Providing upfront, standardised property data through digital property packs would transform this process.”
“Providing upfront, standardised property data through digital property packs would transform this process.
“When material information is available at the point of listing, buyers can make informed decisions, issues can be identified early, and far fewer transactions fall apart late in the process.
“Upfront property data isn’t about adding bureaucracy, it’s about bringing transparency, certainty and trust back into the housing market.
“By embracing digital property packs, we can reduce fall-throughs, shorten transaction times and create a fairer, more resilient system that works for everyone.”
UPFRONT INFORMATION
Phil Spencer, property expert and founder of Move iQ, adds: “The collapse of a house move can be devastating for everyone involved, creating further anxiety in an already stressful process.
“For buyers and sellers, these fall-throughs often mean months of uncertainty, money lost on fees that can’t be recovered, and plans put on hold.
“Much of that pain could be avoided if people were given clear, reliable property information upfront.
“When buyers know what they’re committing to from the start, they can proceed with confidence, avoid nasty surprises later on, and reduce the risk of deals collapsing after so much has already been invested.”
