Having an offer accepted on a property should clear the path to moving into a new home – but most sales collapse after buyers and sellers have already paid out thousands in costs, according to new research.
More than half of house moves (58%) fall through after an offer has been accepted, costing buyers and sellers an estimated £2,830 in direct costs such as legal fees, surveys and mortgage costs.
One in six transactions collapse after four months and one in 10 falls through after five months or more. Sometimes it is because vital information about the true condition of the property is not disclosed upfront. Other times affordability issues arise late into the process putting the house price out of reach.
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With around 1.2 million residential transactions taking place each year, the total cost could be as high as £2 billion a year in wasted time and fees as people try to buy a house or sell their home.
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The findings from the Open Property Data Association (OPDA), based on a survey of 5,000 recent home movers, highlight deep-rooted problems with the home‑buying process.
The data comes at a time when the economy and housing market are already under strain. Higher interest rates, tighter affordability, and longer transaction times have increased the risk of deals collapsing before completion, leaving families financially stretched and emotionally drained.
When asked how they were affected by a collapsed sale or purchase 43% cited emotional stress as the biggest impact. More than four in 10 people (41%) said their plans were significantly delayed.
The impact was felt most acutely by older home movers. Among those aged 55 and over, almost six in ten (59%) reported high levels of emotional stress.
Maria Harris, chair of the OPDA, said: “These figures lay bare a housing market that is failing consumers at every stage. Far too many transactions collapse because crucial information only comes to light weeks or even months after an offer is made. By then, buyers and sellers have already invested significant time, money and emotional energy.”
How to avoid a property chain collapsing
Harris is calling for upfront, standardised property data through digital property packs to be available to all buyers to avoid any hidden surprises that could jeopardise a home buying chain.
Phil Spencer, property expert and founder of property advice website Move iQ, added: “For buyers and sellers, these fall‑throughs often mean months of uncertainty, money lost on fees that can’t be recovered, and plans put on hold. Much of that pain could be avoided if people were given clear, reliable property information upfront.
“When buyers know what they’re committing to from the start, they can proceed with confidence, avoid nasty surprises later on, and reduce the risk of deals collapsing after so much has already been invested.”
While buyers are waiting for upfront digital property documents to become mainstream, these are the issues Ian Futcher, financial planner at Quilter warns to be aware of in the current market that could jeopardise a sale – and how to prepare for them.
1. Get an agreement in principle early
The two most common causes of chains collapsing are affordability issues – where buyers either fail to secure a mortgage or see offers revised as rates change – and survey results uncovering problems that lead to renegotiation or withdrawal.
In the current environment, Futcher said mortgage dynamics are playing a bigger role. “As rates have shifted more quickly in the UK than in some other markets, buyers can find themselves reassessing what they can afford midway through a transaction, which increases the risk of deals falling apart,” he pointed out.
“Securing a mortgage agreement in principle early in the process can provide greater certainty on borrowing capacity,” Futcher said.
2. Use a good mortgage broker
Working closely with a broker or adviser helps ensure buyers are matched with suitable products from the outset and give flexibility should cheaper deals become available in the run up to completion. Seek recommendations from friends and family who’ve had positive experiences, or use a free matchmaking service like VoucherFor or Unbiased to find a vetted mortgage broker.
3. Keep transactions moving
Futcher said: “Delays often create the conditions for second thoughts or changing circumstances, so maintaining regular communication with lenders, solicitors and agents can help keep momentum and avoid surprises emerging late in the process.”
4. Factor in changes in mortgage rates
Buyers who have factored in potential rate movements and ensured they have sufficient financial headroom are better placed to proceed, even if market conditions shift slightly before completion, said Futcher.
“In a market where uncertainty remains elevated, taking advice and stress-testing affordability upfront can make the difference between a successful completion and a collapsed chain,” he said.
