Home sales now take 104 days to exchange

Home sales in the UK are now taking an average of 104 days to reach exchange of contracts, marking the first time on record that the process has exceeded 100 days in April. This extended timeline reflects growing complexities in the property transaction process, with leasehold sales notably contributing to longer delays.

Lengthening transaction times

According to Connells Group, the average property that exchanged contracts in April had been under offer for 104 days. This is a significant increase compared to April 2019, when the average was 76 days, and well above the approximately 60-day timeline typical in the early 2010s. The data also reveals that 61% of transactions now take longer to exchange after an offer is agreed than the time it took to find a buyer.

Aneisha Beveridge, Research Director at Connells Group, commented: “For the first time on record, it is now taking more than 100 days, on average, for a sale to progress from offer agreed to exchange.” She highlighted that the transaction process has become more drawn-out since the pandemic, citing extra checks, longer chains, and tighter legal and compliance requirements as key factors.

Impact of leasehold sales

Leasehold properties are experiencing the most significant delays. Connells reports that leasehold homes took an average of 155 days to reach exchange in April, compared to 97 days for freehold properties. This 58-day gap is the widest on record and far exceeds the 13-day difference seen before the Covid-19 pandemic. The extended legal requirements and delays from managing agents are contributing to these longer timelines.

The issue is particularly pronounced in markets with a high concentration of flats, such as London and other major urban centres, where leasehold properties make up a larger share of sales.

Longer waits and increased risks for buyers and sellers

Beveridge explained the wider implications: “The knock-on effect is that buyers and sellers are left exposed for longer once a deal is agreed, and we’re increasingly seeing more transactions collapse later in the process.” She added that as sales take longer to complete, buyers become more vulnerable to fluctuations in mortgage rates and house prices during the extended period, increasing uncertainty for all parties involved.

Nearly one in five homes (17%) now take more than six months to reach exchange after going under offer, up from 13% a year ago and just 5% a decade earlier. This trend underlines the growing challenges within the property market’s transaction pipeline.

Mortgage versus cash purchases

The difference in transaction times between cash and mortgaged purchases has re-emerged. While both types took a similar length of time to exchange contracts in April last year, this April, mortgaged purchases took nine days longer than cash sales. Although this gap is narrower than the 15-day difference recorded in April 2022, it reflects ongoing volatility in borrowing costs and mortgage market conditions.

What this means for landlords

For landlords and letting agents, these extended transaction times may affect property acquisition and disposal strategies. Longer waits to exchange contracts can delay rental income or impact portfolio management plans. Leasehold properties, in particular, may require additional due diligence and patience due to the protracted legal processes involved.

Understanding these timelines can help landlords better manage expectations and plan for potential delays, especially in markets with a high proportion of leasehold flats. It also emphasises the importance of working with experienced conveyancers and managing agents to navigate the increasingly complex sales process.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/