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Housing survey shows one buyer in six pulling out of sales process

Housing survey shows one buyer in six pulling out of sales process

A recent survey provides more evidence to the controversial debate about a possible reform of the house purchasing process – a subject that provides no end of argument to those involved in house buying or selling.

This new data, involving 2,056 people over the age of 18 all of whom who had previously sold at least one property, revealed that one buyer in six pulls out of a deal.

The most common reasons given were purchaser finance, a disagreement over the price or a simple change of mind by the buyer.  Of the sellers, it was discovered that 16% had seen the sale of their house fall through because the buyer had pulled out of the deal.

Of the reasons given, 17% said they did not know but of the rest the following makes for interesting reading – 24% said the buyer couldn’t raise the funds, 19% blamed disagreements over price, 16% said the buyer chose to buy a different property, 9% said the buyer’s own sale fell through while 8% blamed a problem thrown up by the survey.

Fourteen per cent said they had fallen prey to gazundering and ended up selling their home for less than the amount that was initially agreed (the average price difference was £8,500) while for those whose deals collapsed, the average sum lost as a result of the buyer pulling out was £1,945.

Tellingly, given the current industry debate about reservation fees, 61% of respondents said they thought the buyer should be made to pay lost fees if they pull out of a deal. On the other side of the coin, it was found that one in nine sellers had pulled out of a deal to sell their home after putting it on the market.

The findings go to the heart of the current industry debate about buying reforms.

In January the Ministry of Housing, Communities and Local Government revealed that politicians and officials were studying a ‘model’ two page reservation agreement drawn up by a law firm as a possible way of slashing fall throughs and speeding up transactions. An announcement is expected soon on a pilot project.

The government has also hinted that it is looking at the idea of property ‘log books’ although it insists it has no intention of reintroducing Home Information Packs which had been widely criticised by agents and others in the property industry a decade ago.

Here at Bartram & Co, we suggest that a reservation agreement with financial penalties would clearly have get out clauses but is a positive step forward for all parties involved. The 24% fall-through rate where buyers failed to raise a mortgage is a shocking figure and reflects the poor background checks most agents fail to complete before agreeing a sale.

Whilst it is inevitable that some sales will fall through with we think that with a little more effort at the inception of a sale, that 24% could, and should, be brought down to around 4%-5%. We shall have to wait and see!


Monthly draw: make March the month to win a case of Italian wines (red/whites/mixed) or get one month’s membership to Whittlebury Hall Leisure Club.

How To Enter: Every valuation and instruction for sale or rental between now and next Wednesday (March 27) will be entered into the draw, the winners being notified by e-mail.

If you’re thinking of selling or letting your property and want to win one of these great prizes on offer call (01327) 359164 and speak to our sales or lettings team.

Until next time.

Craig Bees, MD Bartram & Co

E-mail me at craigbees@bartramandco.co.uk


Visit our website www.bartramandco.co.uk and follow us on Twitter@bartramandcotow



Tel: (01327) 359164


Fax: (01327) 359166

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