The number of house sales failing to successfully complete grew in the second quarter of 2016, with more than one in four sales falling through, data released by independent home buyer Quick Move Now has shown.
The number of house sales failing to successfully complete grew in the second quarter of 2016, with more than one in four sales falling through, data released by independent home buyer Quick Move Now has shown.
It's figures indicate a house sale fall through rate of 29% in the second quarter of 2016 - this represents a 9% increase onthe reported 20% in the first quarter of 2016.
Quick Move Now also found that theannual year-to-date fall through rate ended up 25.18%, up 3.56% since the end of the first quarter.
Danny Luke, business manager at Quick Move Now, said: "The first half of 2016 has been an interesting time for the UK property market. Strong demand and low supply in many areas has led to a strong financial performance, but the market also faced a great deal of uncertainty with stamp duty changes, more challenging conditions for investors, and most recently the EU referendum.
"This uncertainty is reflected in the reasons why sales fell through before completion. The most cited reason for a sale falling through was the buyer changing their mind (47.37%).
"This was followed by the seller renegotiating a better offer with a new buyer (15.79%), difficulty securing a mortgage (15.79%) and buyer or seller pulling out of the sale because they felt it wasn't progressing quickly enough (15.79%). The remaining 5.26% of sales failed to complete due to legal issues.
"It seems the uncertainty that has dominated the property market in the last quarter has led to prospective buyers putting in 'panic offers'.
"It used to be usual to do at least a second viewing, potentially even a third, before making a formal offer on a property, but shortage of supply in some areas, alongside widespread market uncertainty as we drew closer to the referendum, led to many prospective buyers feeling pressure to make offers on a first viewing, fearing that they may miss out if they delay.
"Once the dust has settled and the sales start progressing, the cold feet can start to set in, possibly due to nerves about the size of the financial investment and whether they've selected the right property or when surveys highlight potential issues.
"As we move forward in post-Brexit Britain, I would expect to see the market slow, and potentially see the fall through rate continue to rise, as market uncertainty and instability continue."
