"Our research highlights the scale of the problem and how it leaves very few unaffected. But beyond the numbers, we must also consider the financial impact on buyers and sellers of collapsed chains"
- Ryan Etchells - Together
More than half of UK property buyers and sellers have seen their housing chain fall apart, according to new research from Together. The findings reveal that 54% of participants have been caught in a collapsed property chain, leaving many facing unexpected costs, temporary homelessness, or losing out on their dream homes.
Together’s analysis comes as the housing industry campaigns to shorten property transactions to 28 days in an effort to revive a slowing market.
According to the research, the latest English Housing Survey reported 618,000 households that moved within the past 12 months. Based on these figures, Together estimates that around 49,000 property chains may have collapsed in the past year alone.
The study found:
54% of buyers and sellers have experienced a collapsed property chain
38% have seen a chain collapse multiple times, often due to buyers pulling out (14%), sellers withdrawing (11%), or conveyancing issues (12%)
17% said they had a buyer pull out once
Despite this high rate of disruption, just 10% of respondents said they would use or had used bridging finance to resolve issues caused by a chain collapse.
When asked how they responded or would respond to a property chain collapse, participants gave varied answers:
29% said they found or would try to find a chain-free buyer
20% walked away or would walk away from the purchase altogether
17% used or would use a cash buyer
17% were unsure
15% turned to a ‘quick sale’ company to find a buyer without a property to sell
13% offered or would offer a lower sale price
13% rented or would rent temporarily to complete the purchase
11% used or would use bridging finance
“The property chain problem is a symptom of a housing market not currently fit for purpose," explained Ryan Etchells, chief commercial officer at Together.
"Our research highlights the scale of the problem and how it leaves very few unaffected. But beyond the numbers, we must also consider the financial impact on buyers and sellers of collapsed chains, as well as the emotional toll this can have when trying to get on the ladder in a high-cost climate,” said Etchells.
“Though the government has acknowledged the issue, the fix will be long-term given the structural nature of the problem. Being as informed as possible of all the options available when dealing with property chains is key."
"Few are considering bridging finance, for example, a very useful tool for either escaping from housing chains quickly or avoiding them altogether. Until the underlying causes of broken housing chains is addressed, short-term creative solutions will continue to be the best recourse for buyers and sellers.”
