Failed property transactions cost the UK housing market an estimated £257.9m during the second quarter of 2026 after the number of collapsed sales rose by 6.6%.

Analysis by House Buyer Bureau estimates that 71,959 residential transactions fell through during the three months, compared with a lower total in the first quarter.

The increase pushed the estimated cost of failed transactions up by £18.3m from £239.7m in the first quarter, according to its latest Fall-Through Index.

Despite the quarter-on-quarter rise, the number of collapsed transactions was 8.7% lower than in the second quarter of 2025.

AVERAGE COST ALSO INCREASES

The research, which uses transaction data from TwentyCi, also found that the estimated cost of an individual fall-through continued to increase.

The average cost to a seller was put at £3,584 in the second quarter, 0.9% higher than in the preceding three months and 2.8% above the equivalent period last year.

House Buyer Bureau calculated the figure using inflation, estimated changes in legal fees and the latest house price data.

Chris Hodgkinson, managing director of House Buyer Bureau, said: “It’s disappointing to see the number of collapsed transactions increase again during the second quarter of 2026, resulting in financial losses and stress for tens or thousands of homebuyers and sellers.

“Whilst fall-through volumes remain notably lower than they were this time last year, the latest increase highlights just how fragile the process of buying and selling a home can remain.

“The fact that the average cost of a failed sale has also continued to rise means that every collapse carries a significant financial consequence for those involved.

“For sellers in particular, a fall-through can mean wasted time, additional costs and the uncertainty of having to put their property back on the market, often after they have already made plans based on their sale completing.

“The good news is that the number of fall-throughs remains below last year’s levels, but the latest figures demonstrate that there is still considerable scope to improve certainty within the transaction process.

“With affordability pressures, changing buyer circumstances, and wider economic uncertainty continuing to influence the market, reducing the risk of a sale collapsing should remain a priority for both homeowners and the industry as a whole.”