You are here: Home - Mortgages - First Time Buyer - News -

Property transaction collapses cost £880m in 2021

0
Written by:
17/02/2022
Home buyers and sellers wasted £880.4m on fees and charges on property transactions which collapsed last year.

Property transaction collapses cost UK home buyers and sellers £880.4m in 2021, an increase of £74m on the previous year.

An estimated 326,091 transactions failed to make it over the line in 2021, according to property purchasing specialist HBB Solutions. This is an increase of 9.2% year-on-year, pushed up due to the property boom during the pandemic and the stamp duty holiday.

And with the average collapse costing £2,700, Brits forked out £880.4m as a result.

Common reasons for a property sale or purchase to fall through include broken chains, survey issues, conveyancing delays, gazumping and a breakdown in negotiations.

Managing director of HBB Solutions, Chris Hodgkinson, said: “One in every five property transactions will unfortunately fail to make it over the line and not only is this extremely frustrating for those involved, but it can see buyers and sellers incur a considerable cost, having already forked out for requirements such as surveys and conveyancing costs.

“Unfortunately, an uplift in the number of transactions collapsing is the downside to the pandemic property market boom but there has been one silver lining to such a heightened level of demand.

“We’ve seen those properties that have endured a collapse manage to secure a new buyer at a very fast pace and often for a higher price than they were originally due to sell for. While this doesn’t make the cost incurred any easier to stomach, it does mean that they can push on with their sale and minimise the delay in moving.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week