Almost a third of property sales fell through before completion over the last three months, according to new figures.
Some 30 percent of those failed sales were attributed to difficulty securing mortgage funds, which Quick Move Now – the company that published the figures – suggests shows an increasing caution from lenders.
Danny Luke, Quick Move Now’s managing director, says: “In this strong market it’s unusual for a buyer to have their offer accepted without having an agreement in principle in place with their mortgage lender. This means that many of those who were turned down for a mortgage would initially have been offered an agreement in principle and suggests that underwriters are becoming more selective about the level of risk they’re willing to accept, both in terms of borrowers’ finances and the properties they are willing to lend on.”
Whilst the percentage of properties falling through has remained stable during the first half of the year, falling just one percent between the first and second quarters, the reasons for the failed sales offer an interesting insight into the market. Growing inflation and higher costs of living seem to have made both lenders and buyers increasingly cautious, with half of failed sales attributed to the buyer changing their mind about the property, pulling out of the sale in favour of another property, or pulling out after an unfavourable survey report. The remaining 20 percent of failed sales were due to gazumping and changes in the buyer’s circumstances.
Scott Squire, Property PX Group’s National Client Director, said: “Failed sales continue to be a significant issue for both buyers and sellers. Our part exchange service offers a simple solution to both members of the public, who are concerned about failed sales, and housebuilders who want the certainty that comes with offering a part exchange service.
“We work with developers of all sizes and can either offer a complete outsourced part exchange service or support an existing in-house offering.
“Part exchange really is the simplest way to eliminate the cost and uncertainty of failed sales.”
If you’d like to find out more about how Property PX Group could support your sales, you can call and speak to Scott or a member of the client management team on 01793 268960 or email email@example.com