Approx 1 in 3 house sales fall through

Screenshot 2015-07-20 18.02.31More than a third of home sales fall through before completion, new research has revealed.

Data released by Quick Move Now shows some 36 per cent of deals started in the second quarter of this year were not completed. This is up from the 23 per cent reported in the preceding period.

Of the sales that fell through, 22 per cent were due to the buyer changing their mind, while 16 per cent were a result of them being refused lending. A further 13 per cent were cancelled due to slow progress and the same number thanks to a higher offer coming in.

Other issues that caused a sale to fall through include the buyer attempting to renegotiate (8.7 per cent), issues being highlighted during a survey (six per cent), a change in the buyer’s circumstances (5.8 per cent) and a chain breakdown (5.8 per cent).

Danny Luke, business manager at Quick Move Now, stated: “As the property market becomes more buoyant and an increasing number of properties become available, both sides of a property sale feel they have options if the sale is not progressing as quickly or as well as they had hoped.”

“Buyers are less likely to move forward with a purchase if the survey brings up surprises, and sellers are less willing to drop the price in a renegotiation,” he added.

This research has coincided with the release of figures from Zoopla that show the number of British properties worth more than £1 million has exceeded half a million for the first time.

Such homes now number 524,306, which represents an 8.3 per cent increase compared to 12 months ago.

Homes worth £1 million or more can be found on more than 10,000 streets across the UK, with 43 per cent of these in London. Away from the capital, Guildford, Leatherhead and Richmond in Surrey have the highest concentrations of million-plus properties.