The report, which shows there have been 312,000 cancelled purchases in the last year, showed a slight increase in sale fall-throughs in Q3 - in Q2, the number was 0.5% lower at 81,000.
Recently the government unveiled plans to reduce the length of time it takes to complete a property transaction by four weeks - as well as saving first-time buyers money. The proposal includes mandatory upfront information about properties and binding contracts to reduce the number of parties pulling out mid-way through lengthy transactions.
Colin Bradshaw, TwentyCi’s Chief Executive Officer, said: “With 82,000 sales falling through in Q3 alone, we’re fully behind the government’s push to shake up the homebuying process. Waiting four months just to exchange contracts is far too long - no wonder buyers get cold feet, or unexpected issues crop up in surveys. A bit more upfront info at the start could really help smooth things out. As we head into the final stretch of the year, we’re cautiously optimistic. If the Autumn Budget plays ball, we’re on track to hit 1.15 million completed transactions in 2025.”
Chris Williams, founder of home buying and selling technology consultancy Novus Strategy, said of the figures:
“The big takeaway from this data, coming just days after the Government announced major homebuying reforms, has to be the sheer scale of the damage being inflicted on the property industry by fall-throughs.
“There have been 312,691 cancelled purchases in the last year according to TwentyEA/Ci, which is an absolutely eye-watering figure. Fall-throughs often occur due to the length of time it takes to complete a purchase, with changing circumstances, life events and long chains all exacerbating the problem. If we can reduce completion times and make the process more transparent, these numbers should fall sharply, as industry pilots have already demonstrated.
“Abandoned purchases are responsible for billions of pounds wasted each year and the human cost of this disruption is also extensive. Behind every cancellation will be a family that can’t move into a larger home, a couple unable to move in together or a pensioner struggling to downsize. Industry suffers too, from housebuilders and estate agents to mortgage brokers and lenders all shouldering the cost of wasted effort and investment.
“The industry has been calling on the Government to mandate some of the improvements we need to see, and the far-reaching consultation revealed earlier this month was very welcome as it will inject some much-needed momentum.
“We’re already starting to see some of the green shoots of collaboration in industry that will deliver the transformation required, driven by organisations such as the Open Property Data Association (OPDA). All the different players involved in transactions are investing now in getting this right and the rewards will be extreme. It’s easily possible that transaction levels will reach a new, permanently higher plateau that everybody will benefit from.”
