Failed house moves in the UK are estimated to cost the economy nearly £2 billion annually, highlighting significant inefficiencies and frustrations within the property market. Research reveals that more than half of property transactions collapse after an offer is accepted, often after months of delay and considerable expense for buyers and sellers alike.

High rate of collapsed transactions

According to the Open Property Data Association (OPDA), 58% of property sales fall through after an offer has been accepted. With approximately 1.2 million residential transactions occurring each year, the average cost of a failed move is calculated at £2,830. This figure includes direct expenses such as legal fees, surveys, mortgage costs, and lost productivity, culminating in an annual economic impact of £1.97 billion.

The research underscores a home-buying process where buyers and sellers invest significant time and money before critical issues emerge, causing deals to collapse late in the transaction.

Market failures and the call for digital property packs

Maria Harris, Chair of the OPDA, described the housing market as one that “is failing consumers at every stage.” She explained that many transactions fail because vital information comes to light only weeks or months after an offer is made, by which time considerable emotional and financial investment has already been made by both parties.

Harris advocates for the introduction of upfront, standardised property data through digital property packs. She believes this would allow buyers to make informed decisions earlier, identify potential issues sooner, and reduce the number of transactions that collapse late in the process. “Upfront property data isn’t about adding bureaucracy, it’s about bringing transparency, certainty and trust back into the housing market,” she said.

By adopting digital property packs, the OPDA argues the market could reduce fall-throughs, shorten transaction times, and create a fairer, more resilient system for all participants.

Time wasted and emotional toll

The OPDA’s study, which surveyed 5,000 recent home movers, found that a failed transaction typically wastes around three months. Notably, one in six collapsed deals fell through after four months, and one in ten failed after five months or more. This prolonged uncertainty is exacerbated by current challenges such as higher interest rates, tighter affordability, and longer transaction times, all of which increase the risk of sales collapsing before completion.

Emotional stress is a significant consequence for those affected, with 43% citing it as the biggest impact and 41% reporting significant delays to their plans. Among those aged 55 and over, the emotional toll is even higher, with 59% experiencing high levels of stress.

Expert perspective on avoiding costly fall-throughs

Phil Spencer, property expert and founder of Move iQ, emphasised the distress caused by collapsed house moves. He noted that these fall-throughs often result in months of uncertainty, unrecoverable fees, and disrupted plans for buyers and sellers alike.

Spencer highlighted the importance of clear, reliable property information upfront to mitigate these issues. “When buyers know what they’re committing to from the start, they can proceed with confidence, avoid nasty surprises later on, and reduce the risk of deals collapsing after so much has already been invested,” he said.

What this means for landlords

For landlords, the high rate of failed transactions signals a need for greater transparency and efficiency in the sales process. Collapsed moves can delay sales and purchases, impacting rental portfolios and investment strategies. Supporting initiatives such as digital property packs may help reduce fall-throughs, enabling landlords to plan more effectively and avoid costly delays.

Landlords should also be aware of the emotional and financial strain that failed transactions place on tenants and buyers, reinforcing the value of clear communication and thorough property information when marketing or managing sales.

Source: Based on reporting from Property118

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