Withdrawals remain a major market issue
Property transactions falling through in the UK have increased by 18.1% on a quarterly basis, according to analysis by digital property pack provider Moverly.
Despite this rise, seller withdrawals remain a much larger issue for the housing market, noted Moverly, which examined quarterly property transactions from Q1 2023 to Q2 2024, focusing on deals that collapsed after an offer was accepted (fall-throughs) and cases where sellers removed their listings (withdrawals).
In Q2 2024, 76,619 property deals fell through, representing an 18.1% increase from the previous quarter and a 12.5% rise from the same period in 2023. Withdrawals, by comparison, saw a modest 2.1% quarterly increase and 9.5% annual growth. However, withdrawals continue to dominate the market, with 187,262 recorded in Q2 2024 — more than double the number of fall-throughs.
Moverly chief executive Gemma Young (pictured) attributed the increase in fall-throughs to higher interest rates, despite a hold on rate hikes since September 2023. She noted that homebuyers are still grappling with the elevated borrowing costs.
“It’s hardly surprising that we’ve seen a sharp uplift in the number of sales falling through, as the market continues to suffer from the instability caused by the higher cost of borrowing,” Young said.
She also pointed to seller withdrawals as a key issue, with many pulling their properties from the market due to insufficient buyer interest or unmet price expectations. She emphasised the importance of realistic pricing and ensuring potential buyers have access to all relevant information to speed up transactions.
Looking ahead, Young remains cautiously optimistic, noting an increase in buyer activity during Q3.
“With market momentum starting to build, there’s a good chance that we could see a reduction in fall through rates during the second half of this year and, with more buyers entering the fray, we should see less sellers taking the decision to withdraw as well,” she said.
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