Collapsed house moves cost the UK £2bn

Landlords watching the sales market face another warning sign, with failed house moves now estimated to be costing the UK economy almost £2bn a year.

Research from the Open Property Data Association found that 58% of property transactions collapse after an offer has been accepted.

The findings point to a home-buying process in which buyers and sellers can spend months, and thousands of pounds, before problems emerge and deals fall apart.

With around 1.2 million residential transactions taking place each year, OPDA says the average failed move costs £2,830 in direct costs and lost time.

That includes legal fees, surveys, mortgage costs and lost productivity with the annual cost to the UK economy reaching £1.97bn.

The OPDA is calling for wider use of upfront digital property packs, giving buyers and sellers key information before the sale process starts.

Market is failing consumers

Chair of the OPDA, Maria Harris, said: “These figures lay bare a housing market that is failing consumers at every stage.

“Far too many transactions collapse because crucial information only comes to light weeks or even months after an offer is made.

“By then, buyers and sellers have already invested significant time, money and emotional energy.”

She added: “Providing upfront, standardised property data through digital property packs would transform this process.

“When material information is available at the point of listing, buyers can make informed decisions, issues can be identified early, and far fewer transactions fall apart late in the process.

“Upfront property data isn’t about adding bureaucracy, it’s about bringing transparency, certainty and trust back into the housing market.

“By embracing digital property packs, we can reduce fall throughs, shorten transaction times and create a fairer, more resilient system that works for everyone.”

Three months wasted

The study, based on a survey of 5,000 recent home movers, found the average failed transaction wastes around three months.

One in six collapsed deals fell through after four months, while one in 10 failed after five months or more.

Higher interest rates, tighter affordability and longer transaction times have added further pressure to the market, increasing the risk of sales collapsing before completion.

Among those affected by a collapsed sale or purchase, 43% cited emotional stress as the biggest impact.

A further 41% said their plans had been significantly delayed.

Among those aged 55 and over, 59% reported high levels of emotional stress.

Prevent wasting money

Phil Spencer, the property expert and founder of property advice website Move iQ, said: “The collapse of a house move can be devastating for everyone involved, creating further anxiety in an already stressful process.

“For buyers and sellers, these fall throughs often mean months of uncertainty, money lost on fees that can’t be recovered, and plans put on hold.

“Much of that pain could be avoided if people were given clear, reliable property information upfront.”

He added: “When buyers know what they’re committing to from the start, they can proceed with confidence, avoid nasty surprises later on, and reduce the risk of deals collapsing after so much has already been invested.”