A third of sales in the UK fall through before completion, research suggests

A third of buyers in the UK, some 3.69 million, who had their offer accepted on a property saw the deal fall through before completion, according to new research.

But the collapse of sales varies according to where you live, the survey from Market Financial Solutions found. For example, it is more likely to happen in London where 61% of sales fell though and less likely in Scotland where it was just 15%.

A breakdown within the chain was the most common reason for people losing out on a purchase after having an offer accepted at 41%, followed by 33% due to mortgage delays, and 16% who said that their purchase fell through because, despite having a mortgage in principle, the lender later rescinded the agreement.

On average, property buyers lose some £2,899 in solicitor and surveyor fees on a failed purchase and the firm says that this means as much as £10.7 billion has been lost in fees by unsuccessful property buyers since 2008.

The research from the bridging lender also found that 11% who lost the property said they ultimately settled for a different property they liked less.

According to Paresh Raja, MFS chief executive officer, it is concerning to see so many deals falling through after the formal house buying process has begun.

Paresh Raja said:

‘Evidently, difficulties in accessing the finance they need to complete the deal is a major issue for buyers.

‘Whether rejected by a lender or facing severe delays, buyers must ensure they are aware of all the options available to them, including the increasingly popular alternative finance markets, so they do not unnecessarily suffer the financial and emotional strains of seeing a property purchase collapse.’

Kindly shared by Property Wire