Market data from Quick Move Now has shown there has been a big drop in fall throughs in the market, with the fall through rate at the lowest in two years.
However, a quarter of property deals are still not making it, causing agents to be extra cautious about keeping their pipelines intact.
Total number of fall throughs saw a big drop in the second quarter, although nearly a quarter of sales still never made it to completion. A huge 55.8% of property deals failed in the first three months of this year, but this was down to less than 25% between April and June in 2023. Of the sales that failed in the second quarter, half fell through because the buyer changed their mind and withdrew the property from the estate agent’s roster of properties.
A further quarter fell through because the buyer was unable to get a mortgage, or because their mortgage product was withdrawn and replaced with a more expensive alternative. The remaining 25% of failed property sales were attributed to chain-break or the seller withdrawing from the sale.
Managing Director at Quick Move Now, Danny Luke commented:
“With the level of economic uncertainty seen over the last 3 months, it’s little surprise that the most common reason for failed property sales during that period was the buyer changing their mind and pulling out of the sale. Even would-be buyers who can afford to move are being cautious. Many are concerned about how high interest rates will go and what impact further rises will have on property prices, and many potential buyers are adopting a ‘wait and see’ approach.
“Where property sales are going ahead, estate agents are doing everything they possibly can to keep chains together, knowing that a new sale is likely to be difficult and time-consuming to tie up.”
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Source: Thenegotiator.co.uk
