Over a quarter of home sales fell through in the second quarter of 2019.
According to a report from Quick Move Now, 25.49% of home moves fell through between March and June this year.
Whilst this represents a 2.16% increase on the 23.33% property purchase fall through rate from the opening quarter of 2019, it suggests an increased confidence is returning to the property market when compared with 2018’s figures.
Comparatively speaking, the fall through figures from 2019 have been welcome relief to a stuttering market when 50% of sales were deemed to have failed in the final quarter of 2018.
The latest report has found that almost a third (31%) of failed transactions were attributed to buyers changing their mind and a collapse in the dreaded property chain.
Around a quarter (23%) of buyers were deterred following negative survey results and 15% were scuppered because a buyer had failed to secure a mortgage in time.
Danny Luke, Managing Director of Quick Move Now, commented:
“This figure is good news for the property market after the unsettled final quarter of last year, which saw a fall through rate of almost 50%. Despite the ongoing political uncertainty, it appears that a sense of calm has returned to the market, although it is continuing to move at a slower, more cautious pace.
“With 31% of the property sales that fell through doing so because of a chain collapse, a chain free buyer is often a much better option than one who offers slightly more but has their own property to sell.
“It’s important to choose the right agent as it shouldn’t all come down to money. Select an agent that has recent experience of selling similar properties in the area and who is going to work proactively on your behalf to find you the best sale.
“The property market is moving at a slower pace and with lower volumes than usual, but there are still people who want, and need, to move. If you have a property to sell, my advice would be to price it attractively, present it well and find out as much as you can about your buyer’s personal circumstances so you can maximise your chances of achieving a successful sale.”
Have conveyancers found that the majority of sales in 2019 are completing? Are fall through rates still a significant issue?
3 Responses
The stress and cost of failure is still far too high.
The system needs radical change
I agree John Harvey. Abortive sales are disastrous. Our process in the UK is out dated and antiquated. Such stress and disappointment is caused when chains collapse. The sooner the whole system is overhauled the better!!!
Radical change should target the problem of the chain sale
This can be done either by
replacing linked transactions with brokerage where large financial institutions sell properties and take others in exchange
or
recognising that linked housing transactions are supply chains and replacing lawyers and conveyancers with supply chain experts in the organising role.