How common is it for property purchases to fall through?

Almost a third of homebuyers across the UK who have had an offer accepted on a property saw the purchase fall through before completion, according to the latest research.

A survey commissioned by Market Financial Solutions (MFS) revealed that 23% of UK adults (11.91 million) have had an offer accepted on one or more properties in the last decade, but of those, 31% (3.69 million people) saw their deal fall through before completion.

The most common reason for deals falling through was revealed to be problems in the property chain (41%), while a third of buyers (33%) blamed delays from the bank providing the mortgage.

Some 16% said that their purchase fell through despite having a mortgage in principle after the lender later rescinded the agreement. 

More than one in 10 (11%) said they ultimately settled for an alternative property that they liked less because their earlier deal fell through.

“The UK is renowned for its love of bricks and mortar – many people strive to own a home – while real estate has long been a popular asset among investors,” said Paresh Raja, CEO at MFS (pictured above).

“However, amidst such strong demand for property, it is concerning to see so many deals falling through after the formal house-buying process has begun.

“Evidently, difficulties in accessing the finance they need to complete the deal is a major issue for buyers. 

“Whether rejected by a lender or facing severe delays, buyers must ensure they are aware of all the options available to them – including the increasingly popular alternative finance markets – so they do not unnecessarily suffer the financial and emotional strains of seeing a property purchase collapse.”

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