A record of almost half of all house sales in England and Wales fell through before completion in the final quarter of 2018 according to YourMoveNow, a property company which has monitored fall-throughs for many years. It says that the fourth quarter of last year saw an enormous 49.8 per cent of all agreed property sales fall through - up from a more typical 28.3 per cent in the third quarter of the year.
The key reasons for these fall-throughs were:
30% - the buyer simply changing their mind and pulling out
19% - the seller receiving a higher offer after the sale was agreed
16% - a survey alarming the buyer leading to them pull out
13% - difficulty with the buyer securing a mortgage
10% - slow progress on the purchase leading to the buyer pulling out
9% - the chain collapsing
3% - the buyer reducing their offer after the original offer accepted.
The general feeling in the property industry is that continued political uncertainty and its knock-on financial concerns are undoubtedly taking their toll on market confidence. With speculation being mixed on which way interest rates will head after Brexit day on March 29th, the concern is that many existing buyers are having second thoughts heading into Brexit and many would-be buyers are choosing to 'wait and see' before moving forward with such a large financial commitment.
It is challenging to make accurate predictions for the year ahead, especially in such unprecedented times, but at ‘Iles & Jenkin’ we are thinking positively and would expect the higher fall through rate seen in the last quarter of 2018 to calm down as Brexit unfolds and once the UK property market finds a new 'normal', post-Brexit.
In the meantime, our message is ‘don’t leave your sale to chance’. In uncertain times it is more important than ever to entrust the sale of your property to an established High Street Agent with an outstanding sales progression department who will focus on pushing your sale through successfully, despite all of the obstacles that need to be overcome.
So, call us today on 01934 512537, or visit our website www.ilesandjenkin.com, and find out why we believe we are the right agent for you to choose!