It will still cost homesellers almost £788 million this year
Despite signs of an early decline in the actual volume of transactions affected, property sale fall-throughs could still cost the UK property market £787.7 million in 2022, market analysis from property purchasing specialist HBB Solutions has found.
A fall-through is a property sale that fails before completion, often caused by the buyer or seller backing out of the sale which itself can be caused by, among other things, problems discovered during surveying, a break in the chain, and unforeseen issues with a mortgage approval.
Previous research by HBB Solutions found that in 2021, around 326,000 property sales collapsed, costing UK homesellers £880.5 million. This figure had been increasing throughout the pandemic, up from 272,768 fall-throughs in 2019.
However, the latest figures show early signs that this negative market trend may be starting to subside.
During the first quarter of 2022, 71,613 transactions collapsed, 17% less when compared to the first quarter of 2021.
Should this downward trend persist for the remainder of the year, HBB Solutions forecasts that the total number of fall-throughs could fall by 12.2% in 2022, to a total of 286,000.
While this would see total fall-throughs remain above pre-pandemic levels, it would sit below the total numbers seen in both 2020 (298,680) and 2021 (326,091).
Despite this, the individual cost of a fall-through is expected to see a marginal increase in 2022, up from £2,700 to £2,750. As a result, HBB Solutions estimates that the total cost of fall-throughs to UK homesellers in 2022 could still hit a staggering £788 million.
Read more: Conveyancing and fallen-through property sales.
Chris Hodgkinson, managing director at HBB Solutions, said fall-throughs have been a problem in the country for a long time.
“Many people place blame at the door of the conveyancing process, saying it’s too long and complex thus providing far too many opportunities for things to go wrong or for people to change their minds,” Hodgkinson said.
“While this might be partially true, we also need to acknowledge that fall-throughs are part and parcel of the homebuying industry, and better protection is needed at a far earlier stage in the transaction process. They’re a problem for property professionals and the general public alike.”
