"If the new proposal requires sellers to provide documents like surveys or fork out early on for certain checks, the financial burden is just getting passed onto the seller"
- Jack Malnick - Sell House Fast
Jack Malnick, MD of cash house buyer Sell House Fast, comments: “Labour’s new proposal is estimated to save buyers £710 but our study has shown that the average collapsed sale costs buyers £2,511, which is more than three times Labour’s estimated saving, and the main reason for a sale falling through is that almost half of all sales parties simply change their mind. So, how does Labour’s proposal actually tackle the main problem?”
The research identifies the leading causes of failed house sales:
Buyer or seller changed their mind (47.3%): Nearly half of all sales fail because one party has second thoughts. This is especially common in Norwich, where almost two-thirds (62.5%) of failed moves were due to cold feet.
Higher offer received by seller (29.0%): Just under a third of collapsed transactions occur when sellers receive higher offers, known as gazumping. This is more prevalent in fast-moving markets such as Belfast (38.9%) and Glasgow (38.6%).
Conveyancing delays (14.4%): Paperwork complications or slow communication between solicitors contribute to delays in around one in seven sales. Men were slightly more affected (16.4%), and almost one in four (22.7%) people aged 25 to 34 cited conveyancing delays as the reason for a failed sale.
The financial consequences for buyers vary across the UK. On average, a collapsed sale can cost £2,511, including mortgage application fees, surveys, and solicitor costs. Regional differences are significant:
London: £3,477
South West: £3,099
South East: £2,730
Scotland: £2,708
Yorkshire and the Humber: £2,546
East of England: £2,221
West Midlands: £2,201
East Midlands: £2,120
North of England: £2,119
Wales: £1,893
Additional costs, such as continued rent payments, storage fees, temporary accommodation, or mortgage renewal fees, can further increase the financial burden. Many solicitors and mortgage advisors, however, will only charge once a new property is secured.
“To sum up, the proposed plan is a positive step, at the end of the day saving money is always great, and speeding up the process will help more people get onto the property ladder faster," explained Malnick. "However, if the new proposal requires sellers to provide documents like surveys or fork out early on for certain checks, the financial burden is just getting passed onto the seller."
He added, "The biggest issue is that some sellers might not be able to afford this extra cost, making it extremely difficult to sell, and if their property hasn't been sold 6-12 months later, will they need to pay for the surveys and checks all over again? These are circumstances that need to be considered and addressed should Labour roll out their proposed plan.”
