Unexpected expenses related to chains are causing homeowners to put off future moves, or be more prescriptive in their choice of buyer or property, according to new research from Barclays.
A third of UK adults (32%) who bought or sold a home in the last three years were part of a property chain, with 46% of this group experiencing delays or transaction breakdowns because of chain-related issues.
Recent buyers and sellers report that they budgeted an average of £4,954 for third party expenses, such as surveys or legal costs. However, these costs can rise when chains breakdown, for example due to wasted surveys or extra time needed from solicitors. Those who experienced problems or breakdown of their housing chain said they spent an additional £2,127 on average, 43% above the anticipated budget.
Meanwhile, homeowners who have had a sale or purchase fall through in the last three years name chain breakdown as the top cause, with 22% reporting a buyer or seller pulling out. Over one in 10 (13%) say they were ‘gazumped’ – when the seller accepts a higher offer from a new buyer at the last minute. A similar proportion (11%) were ‘gazundered’ – where the buyer lowers their offer at the last minute, causing the sale to break down. One in seven (15%) admit to trying one of these tactics themselves, resulting in the transaction collapsing.
These dependencies leave a lasting impact on movers, with many changing their tactics for future purchases. Three in 10 (28%) of those previously in a chain say they will delay moving for as long as possible because of the stress incurred, while a quarter (24%) want to find their ‘forever home’ to stay in a property for a longer period of time. A further 15% would exclusively sell to a cash or first-time buyer in future, while 13% would seek a new build to avoid chains.
Availability of higher LTV mortgages improves homeownership aspirations
For first-time buyers, there are signs of easing barriers with the increased availability of high loan-to-value mortgages, but deposits remain challenging, particularly in regions with higher property values such as Greater London.
Barclays mortgage data shows the average UK deposit last month was £59,057, though slightly higher among first-time buyers, at £62,272. Deposit variation between regions is stark, reflecting local property prices, and ranging from a £36,161 on average in the North to over four times that in Greater London at £152,503. In the Capital, three in 10 renters (31%) cite cost of a deposit as one of the biggest barriers to homeownership, with property prices topping the list at 43%.
Though deposits remain a top concern, renters’ confidence in the prospect of homeownership has risen slightly, with 15% saying they believe they could buy a home within the next 12 months, compared with 12% in December. The number of renters who say they couldn’t buy without financial support from family has also eased to 52% from 59% in December 2025.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Movers often face battles on two fronts, as the abundance of long property chains adds acute stress into the process. The new build market can provide part of the solution, removing the chain links on the sell-side, but we also support reforms to modernise, digitise and ease the tension in the home-buying system.
“The start of 2026 has shown encouraging signs for prospective buyers. Higher loan-to-value products have eased deposit requirements, with first-time buyers beginning to reap the benefits. However regional disparities underscore the importance of working with local brokers and to bring homeowners bespoke solutions for their needs.”
Julien Lafargue, chief market strategist at Barclays, added: “In addition to frictions in the process, the UK housing market has also to contend with a mixed macroeconomic picture. Growth slowed in the second half of 2025 and the UK labour market is still softening.
“That said, the consumer remains broadly resilient, suggesting that growth could rebound in 2026. As we look into the first half of the year, political uncertainty and key local elections scheduled for May could lead to a ‘wait and see’ approach for businesses and consumers alike.”
