Property chains are piling more than £2,000 onto the average cost of moving home, with nearly half of buyers caught in chains suffering delays or collapsed deals, according to new data from Barclays.
Research from the bank’s latest Property Insights report shows 32% of adults who bought or sold in the past three years were part of a chain and 46% of that group experienced delays or transaction breakdowns linked directly to chain-related issues.
Recent movers initially budgeted an average of £4,954 for third-party costs such as surveys and legal fees.
But those hit by chain breakdowns report spending an additional £2,127 on average – 43% above what they had planned.
BEHAVIOURAL CHANGE
Three in ten (28%) of those previously in a chain say they will delay moving for as long as possible because of the stress, while 15% would only consider selling to a cash buyer or first-time buyer in future. A further 13% say they would opt for a new-build property to avoid chains entirely.
Chain breakdown is now the leading cause of failed transactions among those whose sale or purchase collapsed in the past three years, with 22% blaming a buyer or seller pulling out.
Gazumping affected 13%, while 11% were gazundered. One in seven (15%) admit to attempting one of these tactics themselves, leading to deals falling apart.
FOREVER HOMES
Despite the friction, demand remains skewed towards larger homes. Semi-detached and detached properties dominate completions across most regions, underlining continued appetite for so-called “forever homes”.
The exception is Greater London, where flats account for 55.5% of completions, reflecting affordability constraints and housing stock.
Confidence in rising property values is stronger among house owners than flat owners. Around 78% of semi-detached owners and 75% of detached owners believe their home has increased in value, compared with 58% of flat owners.
However, rising monthly outgoings remain a concern. Spending on utilities rose 4.4% year-on-year in January, and 18% of homeowners say they are exploring a move to a more energy-efficient property to reduce bills.
DEPOSIT HURDLE
Deposits continue to be a major hurdle, particularly in higher-value regions. Barclays mortgage data shows the average UK deposit in January stood at £59,057, rising to £62,272 for first-time buyers.
In Greater London, the average deposit reached £152,503, more than four times the average in the North at £36,161. In the capital, 43% of renters cite property prices as the biggest barrier to buying, while 31% point to deposit costs.
There are tentative signs of improving sentiment among renters. 15% now believe they could buy within the next 12 months, up from 12% in December, and the proportion who say they could not purchase without family financial support has fallen from 59% to 52%.
NEW BUILD SOLUTION
Jatin Patel (main picture, inset), Head of Mortgages, Savings and Insurance at Barclays, says: “Movers often face battles on two fronts, as the abundance of long property chains adds acute stress into the process.
“The new build market can provide part of the solution, removing the chain links on the sell-side, but we also support reforms to modernise, digitise and ease the tension in the home-buying system.”
“The start of 2026 has shown encouraging signs for prospective buyers. Higher loan-to-value products have eased deposit requirements, with first-time buyers beginning to reap the benefits. However regional disparities underscore the importance of working with local brokers and to bring homeowners bespoke solutions for their needs.”
‘WAIT AND SEE’ APPROACH
Julien Lafargue, Chief Market Strategist at Barclays, adds: “In addition to frictions in the process, the UK housing market has also to contend with a mixed macroeconomic picture. Growth slowed in the second half of 2025 and the UK labour market is still softening.
“That said, the consumer remains broadly resilient, suggesting that growth could rebound in 2026.
“As we look into the first half of the year, political uncertainty and key local elections scheduled for May could lead to a ‘wait and see’ approach for businesses and consumers alike.”
EMOTIONAL STRAIN
Mary-Lou Press, President of NAEA Propertymark (National Association of Estate Agents), says: “With nearly half of those in a chain experiencing delays or breakdowns, and unexpected costs adding more than £2,000 on average, it’s clear the current system is placing unnecessary financial and emotional strain on consumers.
“Propertymark member agents consistently report lengthy transaction times, more recently stating that over 30% of sales took more than 17 weeks to reach exchange.
“When transactions fall through due to chain complications, it not only increases costs but also undermines confidence in the homebuying process. It is therefore unsurprising that many people are reconsidering future moves or looking to avoid chains altogether.”
MODERNISING REFORMS
She adds: ““In light of this, it is positive that the UK Government is actively looking to speed up the home buying and selling process.
“Reforms that modernise and streamline transactions in England and Wales should help reduce fall-through rates, limit unexpected expenses and create a more secure, efficient and transparent system for buyers and sellers alike.”
