Buying or selling a home can be an emotional journey. But until contracts are formally exchanged, the system in England means that either side can still choose to walk away.
If this happens, and the sale ‘falls through’, it can be costly, frustrating, and emotionally draining for everyone involved.
New analysis by property group Hamptons reveals a subtle but significant shift, with more sales falling through later on in the process, often after months of conveyancing. This has increased the level of uncertainty for both the buyer and the seller.
Today, 32.2% of sales fall through within a year of an offer being accepted, very marginally up from 31.2% five years ago and 30.9% a decade ago. However, the flat market is feeling this most acutely, with 40% of offers collapsing within a year, compared to 36% ten years ago.
But fall-throughs in the early stages of a sale are actually becoming less common, Hamptons said.
“Just 19.3% of offers collapsed within the first 90 days over the past year, down from 21.5% five years ago and 24.0% a decade ago. In the flat market, for instance, only 21% of offers fall through within three months – a significant drop from 26% ten years ago.
“Nearly half of all fall-throughs now occur after the 90-day mark, when delays and complications begin to take their toll. Early-stage commitment is strong, but the longer the conveyancing process drags on, the more fragile the deal becomes.”
Long wait times
The group noted that long wait times is at the heart of this trend. Today, it takes an average of 113 days to exchange contracts after an offer is accepted. That’s nearly four months of uncertainty, during which more opportunities for complications arise. Deals that haven’t been exchanged within 140 days become increasingly vulnerable.
“Delays in the process, unexpected survey findings, or unsettling search results can sow the seeds of doubt, gradually eroding confidence in the transaction,” Hamptons said.
“And where sales do collapse, both sides have typically invested heavily in legal fees and mortgage arrangements. Sellers, too, are more likely to withdraw than relist, disheartened by the time and money already lost.”
Unlike many countries, the current conveyancing system in England leaves the opportunity to negotiate on the table right up to the point when legally binding contracts are exchanged, Hamptons said.
“While this sort of system has both strengths and shortcomings, the increasing length of time it takes to reach the point where it’s possible to exchange contracts means that fall-throughs are becoming increasingly expensive and painful events.”
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