Nearly two-third of London property deals collapse after offer is accepted
Nearly two-third of London property deals collapse after offer is accepted, study finds
Nearly two-third of London property deals collapse after offer is accepted, according to a new study. London residents who have had an offer on their choice property accepted in the last 10 years have seen the deal fall through before completion, reveals a survey commissioned by bridging lender Market Financial Solutions.
The survey of more than 2,000 UK adults found that 31 per cent of homebuyers across the country who have had an offer accepted in the last decade have seen the deal collapse.
Figures were the highest for London where 61 per cent of deals fell through, while residents of Scotland had the least at 15 per cent.
The most common reason for people to lose out on a purchase after having an offer accepted was a breakdown within the chain, the research showed.
Meanwhile, 33 per cent saw their deal fail because of delays in getting their mortgage by a bank.
A further 16 per cent of buyers said that their property purchase fell through because, despite having a mortgage in principle, the lender later rescinded the agreement.
On average, property buyers lost £2,899 in fees on a failed purchase, meaning that as much as £10.7bn has been lost in fees by unsuccessful property buyers since 2008.
One in 10 homebuyers said they eventually settled for a different property they didn’t like as much because their earlier deal was unsuccessful.
CEO of Market Financial Solutions, Paresh Raja said the UK is renowned for its love of bricks and mortar – many people strive to own a home, while real estate has long been a popular asset among investors.
However, amidst such strong demand for property, it is concerning to see so many deals falling through after the formal house-buying process has begun. Evidently, difficulties in accessing the finance they need to complete the deal is a major issue for buyers.