A new research by Market Financial Solutions found that property purchases fall through more often than we think.
11.91 million of us have had an offer accepted over the last 10 years, this is 23% of the UK adults. However, 3.91 million of those offers accepted, fell through before the completion date. London had the highest at 61% and Scotland the lowest at 15%.
I remember a particular property I was purchasing falling through and being absolutely devastated, I had mentally put all my furniture in the rooms, imagined myself cooking in the new kitchen and entertaining guests and having lovely barbeques in the gorgeous garden. The stress of losing a purchase, then impacts on the person purchasing your own property and this could cause the collapse of the entire chain of sales. Added to this is the monetary expense of aborted fees from solicitors and the survey on the property, which on average they say is £2,899 total loss. The survey claims this totals over £10 billion over the last 10 years.
Some of the reasons for sales collapsing from the survey were due to delays with their mortgages and lenders rescinding their offers.
At Move On Rentals, we have helped many people in this situation, where they continue with their own sale of the property and rent a property through us. Although unsettling, it does put them in a positive position for their next purchase as they do not have a chain behind them. It is often said, that the next property is better than the one they lost originally.
We are still predominantly a nation of house owners, or enthuse to be. The English Housing Survey from the Government, announced in 2016, property transactions were increasing instead of declining for the first time since 2003. First time buyers are up with the ‘Help to Buy’ scheme from the government, which in turn has helped developers building again.
With regards to fall throughs, it is vital, the offer letter in principle is obtained prior to you putting in an offer on a property, in fact an agent should not be advising you to accept any offer unless proof of funds or the offer letter has been seen.
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