1 in 4 house sales fell through in Q4 2015

1 in 4 house sales fell through in Q4 2015

New data released today by Quick Move Now, has revealed that the house sale fall through rate rose in the last quarter of 2015, with more than 25% of sales failing.

Figures indicate a house sale fall through rate of 27.94 percent for Q4 of 2015, a rise 8.32 percent from the reported 19.62 percent in Q3.

Quick Move Now also released figures for the annual year-to-date fall through, which offers a greater overview of how the property market is performing generally, allowing for seasonal peaks and troughs.  The year-to-date fall through rate remained fairly constant throughout 2015, at around 29 percent, and finished the year at 29.26 percent.

Danny Luke, Business Manager at Quick Move Now, commented: “2015 was an interesting year for the UK property market, and the fall through rates reflect that.  Tougher lending criteria was introduced as a result of the Mortgage Market Review (MMR), which meant some prospective buyers found it challenging to secure a mortgage, or found they were able to borrow less than they had anticipated. In fact, nine percent of sales that fell through did so as a result of not being able to secure a mortgage.

The two biggest reasons for house sales falling through in Q4 2015 were buyer changing their mind (27.2 percent) and problems identified at survey or failed renegotiation following a survey (27.2 percent), which is unsurprising in the current market.  A lack of properties coming to market has led to prospective buyers having to move very quickly in order to secure a property, and may mean they put an offer in on a less than ideal property through fear that they'll be unable to find anything else.  Some inevitably get cold feet about such a large investment, or find that a survey confirms their fears, and pull out before the sale completes.


Danny continued: "Chain collapse still featured prominently, with 22.7 percent of property sales falling through as a result of chain issues, and it's definitely an issue very much on sellers' minds.  We get calls every day from sellers keen to secure a guaranteed sale so they don't risk missing out on their onward purchase due to chain collapse.

Seller pulling out for a higher offer (9 percent) and buyer health issues/personal problems (4.5 percent) make up the remaining failed completions.”

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Latest Comments

Oliver Conway
Oliver Conway 18 May 2017

Making a neat inventory is a good idea, but if the seller is not willing to provide it, can the buyer demand it?

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Bertrand
Bertrand 17 May 2017

First step to nationalisation of the private rented sector IMHO. Nanny state poking their noses into things yet again. I object, as a decent landlord, sometimes having to deal with some pretty awful tenants,...

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Izzy
Izzy 16 May 2017

This is such a great a post. I love the detail you've gone into. It's a very useful article for helping those who are looking at deciding which sector they would like to go into! When I first started investing...

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paul burnham
paul burnham 30 Apr 2017

Jeremy Corbyn's pledge that a Labour government would build 500,000 new council houses must electrify the general election campaign. Reliance on markets and the profit motive has brought huge housing-related...

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CommercialTrust
CommercialTrust 28 Apr 2017

Sadiq Khan?s announcement of an online database of landlords and letting agents who have been convicted of housing offences, appears on face value to be a variation of the already implemented Database

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warren
warren 26 Apr 2017

You're very welcome Mary! Glad you enjoyed them :)

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Mary Ward
Mary Ward 26 Apr 2017

Thank you for the wonderful ideas. First impressions can make or break a deal. It's sadly that many homeowners drop the kerb to create an off-street parking space.

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Tony Gimple
Tony Gimple 14 Apr 2017

I'm not at all surprised that so many landlords are still confused about what the tax changes really mean and how it will affect them. In particular, the blind rush to incorporation is leaving landlords...

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MH
MH 13 Apr 2017

You are right that the bank holidays are going to be spoiled in looking for the properties. But people who want to sell their property and looking for the better relocation, they can get benefits of this...

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bnellyb
bnellyb 08 Apr 2017

There will be an exodus of private landlords over the next 5 years as tax changes take effect, private landlords provide an important service to the rental market, why do housing associations and councils...

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Fred Cassman
Fred Cassman 07 Apr 2017

"Make it look like you are at home": often people forget this and share on facebook their location!

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jared townsend
jared townsend 05 Apr 2017

It'll be interesting to see how & if the Government's asset sale regarding mortgages helps

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