Getting a property sale over the line can be stressful at the best of times, especially for buyers and sellers whose transactions fall-through just before completion.
That was the grim reality for almost a third of those buying and selling property last year, with 28.8% of sales falling through in 2024, according to data from Quick Move Now.
At the heart of the issue is a property process that remains unsecured for months, leaving transactions vulnerable to fall-throughs at any stage. This lack of security in property deals is not just frustrating – it is costing the economy an estimated £8.6bn annually, according to a new report from GOTO Group.
A 2024 analysis by TwentyCi’s Property and Homemover Report found that home-mover spending is three times more predictable than that of non-movers, generating £29bn in annual consumer expenditure. When property transactions fall-through, that spending is delayed or lost entirely, impacting businesses across multiple industries and stalling economic activity.
Yet, despite these staggering numbers, the UK continues to operate under a system that does not guarantee commitment until the point of exchange – often months after an offer is accepted. Meanwhile, other countries with similar transaction timelines report negligible fall-through rates.
While the UK’s long transaction times are often blamed, the report finds that speed alone is not the determining factor for success. Other property markets also have lengthy completion periods yet still manage to secure transactions far earlier in the process. The report examines how property markets in France, Italy, the United States, Scotland and several others, use binding agreements, reservation fees, and structured processes to prevent deals from collapsing unnecessarily.
Nigel Hoath, CEO of GOTO Group, commented: “We don’t just have a problem with delays – we have a problem with commitment. Other countries have structured their processes to create certainty at an earlier stage, and as long as the UK continues without buyer and seller commitments, the fall-through rate will remain unacceptably high. Our report explores the solutions that are already working across global markets and how they could be applied here.”
Most stakeholders in the UK property market already recognise that things cannot continue as they are, yet the solution is not as simple as making more information available, according to Hoath. He points out that while digitisation and upfront data sharing are often seen as the answer, international case studies suggest that transaction certainty depends on early financial commitment and structured buyer-seller agreements – not just on access to information.
Read the orginal article: https://propertyindustryeye.com/new-report-seeks-to-reduce-property-sales-fall-through-rates/
