31% of house sales fell through before completion in the third quarter of 2016, according to new figures from independent home buyer Quick Move Now.
The firm also released figures for the six-month average fall through rate, which it says offers a greater overview and allows for seasonal peaks and troughs. The six-month average fall through rate currently stands at 29.75%; a rise of 4.57% since the end of the second quarter of 2016.
Danny Luke, Quick Move Now’s managing director, said: “As the first full quarter since the results of the EU referendum, the figures from the third quarter offer an important insight into how Brexit has affected the stability of UK property sales.
“Brexit has caused a great deal of uncertainty in the UK property market, and this uncertainty can be seen in the fall through rate figures. A huge 44.44% of the sales that fell through did so because buyers changed their mind, which is reflective of the anxiety and lack of confidence that are currently present in the property market. It also supports the verbal assessment that we’ve had from estate agents throughout the country, that many house sales collapsed as a result of buyers nervously pulling out of sales in the immediate aftermath of the EU referendum result.
“As the initial shock of the EU referendum result begins to subside, I would expect to see a certain level of confidence return to the property market over the next quarter. However, how long that confidence lasts will largely depend on how the process of managing our exit from the European Union progresses. With Teresa May recently announcing that Article 50 will be triggered by the end of March 2017, the market looks set to have a great deal more uncertainty to contend with over the coming year.”
Other reasons cited for house sales falling through include chain break, seller negotiating a better offer from another buyer, survey issues, difficulties securing mortgage finance, and buyer or seller pulling out because they felt the sale was progressing too slowly.