Failed house moves are costing the UK economy nearly £2 billion annually, according to recent research. With over half of property transactions collapsing after an offer has been accepted, the current home-buying process is proving costly and stressful for buyers, sellers, and the wider market.
High rate of collapsed transactions
Research from the Open Property Data Association (OPDA) reveals that 58% of property sales fall through after an offer is accepted. Given that approximately 1.2 million residential transactions occur each year, the average cost of a failed move is estimated at £2,830. This figure includes legal fees, survey costs, mortgage expenses, and lost productivity, culminating in an annual economic impact of £1.97 billion.
The findings highlight a home-buying system where buyers and sellers often invest months and significant sums before unforeseen issues cause deals to collapse.
Market challenges and consumer impact
Maria Harris, Chair of the OPDA, commented: “These figures lay bare a housing market that is failing consumers at every stage.” She emphasised that many transactions fail because critical information only emerges weeks or months after an offer is made, by which time considerable time, money, and emotional energy have already been spent.
Harris advocates for the introduction of upfront, standardised digital property packs to provide essential information at the point of listing. She explained that this transparency would enable buyers to make informed decisions early, reducing late-stage failures and restoring trust in the housing market.
Time lost 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 after five months or more. Rising interest rates, tighter affordability, and longer transaction times have further increased the risk of sales falling through before completion.
Emotional stress is a significant consequence, with 43% of those affected citing it as the biggest impact. Additionally, 41% reported substantial delays to their plans, and among those aged 55 and over, 59% experienced high levels of emotional stress.
Calls for improved transparency
Property expert Phil Spencer, founder of Move iQ, highlighted the devastating effects of failed house moves. He noted that buyers and sellers often endure months of uncertainty, lose non-refundable fees, and face disrupted plans. Spencer stressed that much of this hardship could be avoided if clear and reliable property information were provided upfront.
He added: “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.”
What this means for landlords
For landlords, the high rate of collapsed transactions and the associated costs underline the importance of transparency and preparedness in property sales. Ensuring that accurate and comprehensive information is available early in the process can help reduce fall-throughs, shorten transaction times, and minimise financial and emotional stress for all parties involved. This approach supports a more resilient and trustworthy housing market, benefiting landlords, agents, and tenants alike.
Source: Based on reporting from Property118
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Source: www.property118.com
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