Greycoat Real Estate Explains why a Third of Property Sales Fell Through

Sales of residential properties have a high percentage of falling through the first quarter of 2024. Greycoat Real Estate shows that 31.3% of property sales fell through in the first quarter of 2024. The real estate market is still suffering from buyer caution. 47% of the property deals that fell through were due to the buyer changing their mind or renegotiating the price. Buyer caution was nearly half of the reasons for UK fall-through deals.

Reasons Property Sales Fell Through in Q1 2024

A buyer changing their mind or attempting to renegotiate the price was 47% of the failed sales scenarios, Greycoat adds. The next highest was the buyer struggling to secure the mortgage, which was 20% of the time. A property deal fell through 19% of the time when a buyer withdrew after a property survey. 

China breaks happen when a seller or buyer pulls out and is 8% of the fall-through deals, Greycoat informs. Gazumping is 6% of the fall-throughs when a seller changes their mind or accepts another property.

Risk of the Current UK Housing Market

Greycoat Real Estate finds that buyers changing their minds or not securing a mortgagee made up many of the fall-through property deals. More research suggests that the volatility in the mortgage industry is more impactful on the housing market. Rumors of future lower interest rates create caution amongst buyers because of fears of overpaying by buying too soon. High-interest rates make buyers pay beyond what they would, which leads to renegotiations.

Cost to UK Real Estate Agents

The 269,728 UK fall-throughs in 2023 are money and time lost for the unpredictable real estate market. Greycoat Real Estate estimates that those fall-throughs were equal to £1.2 billion of delayed or lost earnings for the industry. The lost commission is only part of the agent’s money. Each property viewing costs about £23.35, and about ten viewings sell a property.