Buyers getting cold feet results in a quarter of property sales failing

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10th February 2016 10:50 - Housing

It has been revealed that around 25% of property sales fall through due to a growing number of buyers getting cold feet after receiving poor Buyers getting cold feet results in a quarter of property sales failingresults from surveys. The figures show that nearly 28% of house sales failed in the last quarter of 2015; an 8.32% rise from the previous three months.

It only adds to pre-existing challenges for the housing market; with mortgages becoming increasingly harder to secure, higher deposits being needed and a lack of properties going on the market.

The study, carried out by Quick Move Now, discovered that due to numerous mortgage applications being declined 9% of house sales fell through; however, the two leading factors in falling sales - being responsible for 27.2% of failings - were found to be due to buyers having second thoughts and issues with the property being highlighted during a survey.

Quick Move Now’s business manager, Danny Luke, commented:

"2015 was an interesting year for the UK property market, and the falls through rates reflect that.

"Tougher lending criteria was introduced as a result of the Mortgage Market Review, which meant some prospective buyers found it challenging to secure a mortgage, or found they were able to borrow less than they had anticipated.

"A lack of properties coming to market has led to prospective buyers having to move very quickly in order to secure a property, and may mean they put an offer in on a less than ideal property through fear that they'll be unable to find anything else. Some inevitably get cold feet about such a large investment, or find that a survey confirms their fears, and pull out before the sale completes."

The survey results also discovered that 22.7% of sales fell through due to housing chains – many properties being involved in the buying process, health and personal problems contributed as well at 4.5% and 9% of fails were seemingly down to the seller changing their mind and withdrawing from the exchange.

These findings coincide with Brandon Lewis, the Housing Minister, claiming that there is an inadequate amount of houses currently being built in Britain.

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