More than half of homebuyers and sellers in England have seen their property chains collapse according to new research by specialist lender Together, exposing a key structural weakness in the UK housing market.
The findings come as industry leaders intensify calls to halve the time it takes to complete a home sale – from the current national average of four months to just 28 days – in a bid to revive sluggish transaction volumes and restore buyer confidence.
Together’s analysis, based on the latest English Housing Survey, suggests that with around 618,000 households moving in the past year, as many as 49,000 property chains may have collapsed.
The research found that 54% of buyers and sellers have experienced a failed chain, while 38% said it had happened to them multiple times.
BUYERS PULLING OUT
The most common causes of collapse were buyers pulling out (14%), sellers withdrawing (11%), and conveyancing complications (12%).
Despite the prevalence of failed chains, only one in ten respondents said they had used or would consider using bridging finance to complete their purchase and break the chain.
When a sale collapsed, 29% of buyers said they would seek a chain-free buyer, 20% would abandon the purchase entirely, and 17% would turn to cash buyers.
Others opted for quick-sale companies, price reductions, or temporary renting to hold their place in the market.
NOT FIT FOR PURPOSE
Ryan Etchells (main picture, inset), Chief Commercial Officer at Together, says: “The property chain problem is a symptom of a housing market not currently fit for purpose. Our research highlights the scale of the problem and how it leaves very few unaffected.
“But beyond the numbers we must also consider the financial impact on buyers and sellers of collapsed chains, as well as the emotional toll this can have when trying to get on the ladder in a high cost climate.”
BREAK THE CHAIN
And he adds: “Though the government has acknowledged the issue, the fix will be long-term given the structural nature of the problem.
“Being as informed as possible of all the options available when dealing with property chains is key. Few are considering bridging finance for example – a very useful tool for either escaping from housing chains quickly or avoiding them altogether.
“Until the underlying causes of broken housing chains is addressed, short-term creative solutions will continue to be the best recourse for buyers and sellers.”
