Failed house moves could be costing the economy almost £2 billion every year, according to new research published by the Open Property Data Association (OPDA), with many collapses occurring after the offer has been accepted.
According to OPDA’s research, 58% of home moves fall through after offer acceptance. Santander’s Fixing the Broken Chain calculated an estimated direct cost to buyers and sellers of £2,830, including legal fees, surveys, mortgage costs and lost time and productivity. The total cost to theUK economy could be as high as £1.97 billion every year, OPDA said.
The survey of 5,000 respondents who had bought or sold a house in the past five years revealed the average length of time wasted on each failed transaction was around three months. One in six transactions collapsed after four months and one in ten fell through after five months or more. When asked how they were affected by a collapsed sale or purchase, 43% cited emotional stress as the biggest impact, and 41% said their plans were significantly delayed.
The impact was felt most acutely by older home movers: among those aged 55 and over, 59% reported high levels of emotional stress.
OPDA chair Maria Harris (pictured right)
, said: “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. 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.”
Phil Spencer (left), property expert and founder of property advice website Move iQ, added: “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.”
OPDA is the UK’s industry body leading the modernisation of the home buying and selling process through the introduction of smart data. It supports the introduction of upfront digital property packs, providing buyers and sellers with crucial information before the sale process starts.
