"Our property market is broken and needs a thorough overhaul; we must take steps to address it"
- Ryan Etchells - Together
Thousands of UK homeowners are being delayed by property chains, with costly, time-consuming and administratively complex processes leaving buyers and sellers trapped, according to new research from specialist lender Together.
The study found that 60% of UK homeowners have experienced being tied up in a property chain, with 24% delayed in the last five years. Based on the latest English Housing Survey reporting 618,000 households moved in the past 12 months, Together estimates that around 49,000 property chains affected buyers and sellers over the past year alone.
The impact extends beyond inconvenience. Over half of those currently in a chain (57%) said the experience put them off making offers on other homes, while 66% reported that being caught in a chain was more stressful than raising their deposit. A further 59% admitted they had been tempted to walk away from a purchase entirely.
Property chain delays also affect the wider market. Buyers and sellers can face completion waits of several months, slowing transactions for first-time buyers and adding pressure to the rental sector. Together’s research shows that 29% of buyers were waiting two to three months for completion, 7% waited four to five months, and more than 5% waited six months or longer.
The housing industry is campaigning to reduce the time to sell a home to 28 days. Currently, separate research indicates it takes 109 days from sale agreed to exchange, 65% longer than in 2007.
Bridging loans are emerging as a solution for some buyers. A quarter (25%) of those who have used bridging finance said it helped them break a property chain and complete a purchase. However, awareness remains limited. More than half (59%) of those currently caught in a chain said they would consider a bridging loan if it guaranteed they could move quickly.
“While a common occurrence, maddening property chains can ramp up the costs involved with buying a home, and add to the emotional stress and admin that home movers have to deal with,” said Ryan Etchells, chief commercial officer at Together. “Our property market is broken and needs a thorough overhaul; we must take steps to address it."
“This is why it’s important to increase the awareness of simple solutions like bridging, as a significant portion of potential buyers and sellers simply aren’t aware of how beneficial these loans can be. Whether to break out of a time- and money-draining property chain, to help fund renovations, or for buying at auction, this type of financing can be quickly accessed and help people move forward with their property plans now and in the future.”
