They, however, remain lower when compared to the previous year
Fall throughs in the UK property market incurred an estimated cost of £270 million in the third quarter of 2023, latest research from upfront information platform Home Sale Pack has found.
Home Sale Pack based its analysis on the most recent data from TwentyCI, examining the surge in estimated fall throughs and factoring in inflation and heightened legal fees.
The study revealed a 13.3% increase in the number of transactions collapsing during the third quarter of last year, following a 9.3% rise between Q1 and Q2.
During the same period, it was estimated that the average cost of a fall through in Q3 rose to £3,433, up by £51 from the previous quarter and £84 higher compared to the beginning of the year.
Consequently, the total cost of fall throughs for UK buyers and sellers approached £270 million in the third quarter of last year, representing a 15% uptick from Q2.
Despite the escalating frequency and associated costs of fall throughs, the figures remain below those of the previous year. Q3 2023 witnessed a 12.8% reduction in fall throughs compared to the same period in 2022, with the total cost decreasing by 9.8% annually.
Home Sale Pack’s analysis also revealed that from Q1 to Q3 of 2022, an estimated total cost of nearly £775.8 million of fall throughs was recorded. In contrast, during the corresponding period in 2023, this figure is estimated to have reached £717.1 million, indicating a notable £58.7 million difference.
“2023 proved to be a challenging year for the property market and fall throughs remained a prominent obstacle for many homebuyers and sellers to overcome,” commented Ruth Beeton (pictured), co-founder of Home Sale Pack. “The good news is that slower market conditions and fewer transactions tend to yield fewer fall throughs, and so both the number and resulting cost incurred in 2023 have, so far, remained somewhat lower when compared to the previous year.
“Despite this, fall throughs have been increasing consistently throughout 2023, and with the market starting to show signs of a resurgence towards the end of the year, we expect this trend to have continued in Q4.
“Unfortunately, fall throughs are often part and parcel of buying or selling a property and, in some cases, they are inevitable. However, the provision of upfront information has been proven to significantly reduce the threat of a fall through, and it’s one area where sellers have the power to be proactive. In doing so, they can help increase the speed of their transaction while reducing the threat of it collapsing.”
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