32 percent of property sales collapsed in the first quarter of 2022, says property company Quick Move Now.
The new figures, which also look at the reasons for failed sales, suggest that 25 percent of unsuccessful sales were attributed to caution from lenders and difficulty securing mortgage finance. The remaining failed sales were attributed to buyers changing their minds about the property, sellers pulling out due to slow sale progress and buyers experiencing a change in circumstances that meant they were unable to proceed with their purchase.
Danny Luke, Quick Move Now’s managing director, says: “Things are tough for those hoping to move house at the moment. More demand than supply can keep up with means that many would-be buyers are competing for the same property. Increased financial pressure and challenges securing mortgage finance also mean that many buyers are finding that their budget is struggling to keep up with rising property prices.
“If you’re hoping to buy a property in the coming months but are reluctant to get involved in a bidding war to secure the property, your best hope to beat the competition is to make yourself a chain-free buyer. Chain-free buyers are always the best option for anyone with a property to sell, as the chances of a successful property sale are far higher when there’s no property chain. If you have a property to sell, you can either make yourself chain-free by selling your current property and moving into a rental home or, if you’re reluctant to move twice, you could consider a guaranteed property sale to a home buying company who will be able to offer a quick sale on a date of your choice. A sale to any genuine company will mean selling at a discount, so it won’t be the right option for everyone, but it will help you secure your next property and avoid any bidding wars, which often see properties going for tens of thousands of pounds above the original asking price.
“As inflation continues to rise, we are likely to see increased caution from mortgage lenders trying to protect themselves from increasingly challenging and uncertain financial times ahead. If you can secure a mortgage, however, interest rates are still historically low for the time being. As inflation rises this is unlikely to continue to be the case.”
