Aborted Home Sales Run at Double the Rate of CompletionsMake Text Bigger
News Sourced by Property118 News Team
New figures from conveyancing solicitors reckon home sales are failing at twice the number of those that complete.
The firm, In-Deed, claims that house sales are more likely to abort than succeed despite the claims of banks and building societies that the amount of lending to homebuyers is increasing.
The research reveals that an estimated 531,000 sales fell through in the last three months of 2011 – with the rate of failures rising.
The firm also released figures for the rest of 2011 that showed the estimate number of failed purchases has climbed from 394,000 in the first three months, through 376,000 in the second quarter and 542,000 in the third quarter.
The fourth quarter would expect to show a lower figure to take account of the Christmas and New Year break.
The firm says each aborted purchase costs the would-be buyer an average £5,500. They cite the main difficulties as:
- Mortgage problems: Almost 1 in 4 buyers (24%) could not raise a mortgage, with 11% of sellers reporting the same problem
- Legal issues: One in eight cases (13%) blamed the sale falling through on incompetence, delays and mistakes by solicitors
- Estate agents: Around one in five buyers (18%) were unimpressed with their dealings with agents
To help release the stress of buying a home, In.Deed has posted an online game that lets buyers vent their frustrations on mortgage brokers, estate agents and lawyers by firing them out of a cannon.
The angriest buyers with the highest scores could win a cash prize.
|Failed sales (estimated)||Actual sales|
Source: In-Deed and HM Revenue & Customs
Table: Annual house sales since 2006
|Number of transactions|
Source: HM Revenue & Customs
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.