Property

Property sale fall through rate at six year low

Warren Lewis
|
13th January 2020
For Sale 820

The latest figures released by independent home buyer, Quick Move Now, have shown that property buyers remained committed to the sale during 2019 as just 24.42% of house sales in England and Wales fell through before completion.

According to the quarterly fall through figures, the last three months of 2019 saw a quarterly fall through rate of 28.21%.

Looking at reasons for the failed sales, it seems both buyers and sellers are happy to keep looking for a better deal, even after an offer on a property has been accepted. Of the property sales that were unsuccessful in the last quarter of 2019, 36% fell through because the buyer changed their mind and a further 27% collapsed as a result of the seller accepting a higher offer from a different buyer.

Other reasons for failed sales included problems securing mortgage finance (18%), buyer pulling out of the sale due to a problem identified in the property survey (9%) and a sale further up the property chain falling through (9%).

Why property sales failed in Q4 2019:

Buyer changed mind - 36%
Seller accepted higher offer from different buyer - 27%
Difficulty securing a mortgage - 18%
Problem identified during survey - 9%
Chain Break - 9%

Annually, the top reason for unsuccessful sales was the same, followed by difficulty securing a mortgage (17%), seller pulling out due to slow sale progression (15%), chain break (13%), buyer pulling out as a result of a problem identified during the property survey (11%) and the seller accepting a higher offer from a different buyer (10%).

Why property sales failed in 2019:

Buyer changed mind - 34%
Difficulty securing a mortgage - 17%
Seller pulled out due to slow progress - 15%
Chain Break - 13%
Problem identified during survey - 11%
Seller accepted higher offer from different buyer - 10%

Danny Luke, Quick Move Now's managing director, commented: “2019 was another mixed year for the property market. Further Brexit uncertainty and a general election created a significant amount of uncertainty, which undoubtedly had an impact on market confidence and led to some would-be buyers and sellers taking a 'wait and see' approach.

“Those who did choose to move forward with a sale or purchase were serious and committed to the sale - the annual fall through rate is the lowest we have seen since 2013 - but buyer and seller caution are still visible in the reasons given for unsuccessful sales.

“Post-general election, we expect to see a level of confidence return to the market over the coming year.”

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