Improvement in home purchase fall-through rate

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Home buyer Quick Move Now has reported that the number of house sales failing to successfully complete decreased in the second quarter of 2017, with more than one in four house sales falling through before completion compared to one in three seen in the previous quarter.

Its data indicate that 26% of all house sales across England and Wales fell through before completion in Q2 which was a massive decrease from 35% seen in the previous quarter.

Quick Move Now have revealed the reasons behind Q2 house sale fall throughs as follows:

  • Chain break – 35%
  • The buyer changed their mind – 29%
  • Buyer tried to renegotiated on offer – 24%
  • Lender refused credit – 6%
  • House sale not progressing forward – 6%

Quick Move Now has also revealed annual fall through figures, which offer a greater overview of how the property market is performing generally, allowing for seasonal peaks and troughs as well as external economic factors.

Danny Luke, Quick Move Now’s managing director, said: “2016 was a turbulent year for the UK property market. External factors like the EU referendum, the triggering of Article 50, the snap election and the dramatic political results from America drove a lot of uncertainty into the UK economy, resulting in a mass slow down within the UK property market.

“For the first time since the start of 2016, we are starting to see an improvement to the fall through rate as more people commit to the completion of their home purchase. However, even though we have seen a decrease in fall throughs, the reasons behind the Q2 results highlights that uncertainty is still riff with the top three reasons citing a buyer’s decision rather than structural or financial.

“With Brexit talks just beginning, I would expect this level of uncertainty and instability within the UK property market to remain.”

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  1. I would point to the elongated process that we still go through in the UK when it comes to purchasing a property and the antiquated approach solicitors still adopt. Why does it take so long to complete on a purchase, why has the Digital revolution done little to help speed things up? I’m currently going through the process myself and it is like pulling teeth when you try to negotiate a completion date. Do Estate agents not want their extortionate fee for taking a few photos and uploading onto a website?
    When is the house moving process going to join the 21st Century? My chain is still hanging on but 1 in 4 falling apart is a lot of time wasted, heartache for buyers/sellers and wasted money for many
    .

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