Monday, October 18, 2021
Real EstateUK

Property sale fall throughs could hit £67m

Benham

The predominant reasons for a sale falling through are often down to mortgage issues

Lettings and estate agent, Benham and Reeves, has revealed the huge sums that could go down the drain this December as a result of property sales that fall through.

It’s estimated that 25% of all property transactions fall through every year having already accepted an offer. While there were some 862,061 properties sold across England and Wales in 2019, this means a further 287,354 will have failed to reach the finish line. But it isn’t just time and stress that these fall throughs cause home sellers.

By the time a sale falls through, the average home seller has already spent £2,700 on legal or conveyancing fees, survey costs, legal searches and potentially due to accepting a lower than expected offer on the property.

The predominant reasons for a sale falling through are often down to mortgage issues such as down valuations, a break in the chain, conveyancing delays and situational changes.

The research by Benham and Reeves shows that 8.6% of total transactions that completed across England and Wales last year did so in December, making it one of the busier months of the year.

However, while 74,275 home sellers did manage to get a sale over the line last December, Benham’s research suggests that a further 24,758 sales will have fallen by the wayside, costing an estimated £66,846,600 to these sellers.

The current stamp duty holiday has seen huge levels of buyer demand return to the market and as a result, transaction levels are climbing above and beyond those seen last year. However, this has also led to huge delays during the conveyancing process, one of the key causes of a sale falling through.

So not only could nearly 25,000 home sellers see their sale fall through this December due to the current property selling process, but it’s more than likely that this figure could climb even higher as a result of current market conditions.

Marc von Grundherr, Director of Benham and Reeves, commented: It’s really quite astounding that in this day and age, home sellers still face the uncertainty of their sale falling through on the home straight, having already spent a considerable sum of money to reach that point.

He said, you certainly wouldn’t accept a 25% chance of your food not turning up at a restaurant, your heating and water working at home, or getting your paycheque at the end of the month.

Important:

The articles are for information purposes only and Invest for Property shall not be held responsible for any errors, omissions or inaccuracies within it. Any rules or regulations mentioned within the website are those relevant at the time of publication and may not be the most up-to-date.

Invest for Property does not endorse any of the products or services that appear on it or are linked to it and are not liable for any action that you may take as a result of the content of this website, or losses or damage you may incur doing so.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Please remember that investments of any type may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

Leave a Reply

2 × 5 =