More than half of buyers and sellers (54%) have been in a property chain that collapsed, leaving them facing high costs and missing out on their dream home, new research from Together shows.
With the latest English Housing Survey reporting that 618,000 households moved in the past 12 months, that means there could be a staggering 49,000 property chains in the last year alone.
More than half of Brits (54%) have been in a property chain that collapsed, with almost one fifth (17%) of Brits experiencing the buyer pulling out once.
Two fifths (38%) have had a property chain collapse multiple times with 14% due to the buyers pulling out, 11% due to themselves pulling out and 12% because of conveyancing issues with the property.
Despite the high occurrence of property chains collapsing - just one in ten (10%) would have used or would use bridging finance to help resolve this major property issue.
When asked what buyers and sellers did or would do when a property chain they were in collapsed, 29% said they would find a chain-free buyer and 17% would seek a cash buyer, but 20% would walk away - or did walk away - from the purchase altogether.
15% said they would or did use a "quick sale" company to find a buyer that didn't have a property to sell. 13% offered/would offer a lower sale price and the same percentage would rent temporarily to complete the purchase.
Together’s analysis comes amid a campaign by the housing market industry to cut the amount of time it takes to sell a house to 28 days in a bid to resuscitate the stagnant property market.
Ryan Etchells, chief commercial officer at Together, said: “The property chain problem is a symptom of a housing market not currently fit for purpose. Our research highlights the scale of the problem and how it leaves very few unaffected. But beyond the numbers we must also consider the financial impact on buyers and sellers of collapsed chains, as well as the emotional toll this can have when trying to get on the ladder in a high cost climate.
“Though the government has acknowledged the issue, the fix will be long-term given the structural nature of the problem. Being as informed as possible of all the options available when dealing with property chains is key. Few are considering bridging finance for example - a very useful tool for either escaping from housing chains quickly or avoiding them altogether. Until the underlying causes of broken housing chains is addressed, short-term creative solutions will continue to be the best recourse for buyers and sellers.”
