Jagaul.com Real Estate More property transactions falling through

More property transactions falling through

Fall throughs cost UK buyers and sellers an estimated £270m in the third quarter of last year.

This represents the second consecutive quarterly increase, suggesting market conditions are becoming more problematic.

The data comes from analytics firm TwentyCI, with analysis by upfront information platform Home Sale Pack.

Ruth Beeton, its co-founder, said: “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.

“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.”

The number of transactions falling through is on the up, increasing by 13.3% in Q3 of last year, having already increased by 9.3% between Q1 and Q2.

At the same time, Home Sale Pack estimates that the average cost of a fall through in Q3 also climbed to £3,433 – an increase of £51 on the previous quarter and £84 versus the start of the year.

As a result, the firm estimates that the total cost of fall throughs to UK buyers and sellers sat just shy of £270m during the third quarter of last year, 15% higher than the Q2 total.

There were -12.8% fewer fall throughs seen during Q3 of 2023 versus the same period in 2022, while the total cost to the market was also down -9.8% on an annual basis.

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