Almost half of home sellers face broken chains during sales process, research finds – The Intermediary
Property surveys were responsible for 6%, while delays in the conveyancing or legal process and changing personal circumstances each caused 4%.
Gazumping was behind 2% and mortgage lender down-valuations just 1%.
Chain breaks caused delays for 36% of sellers, while 24% saw delays to their onward purchase.
10% had their sale fall through, 10% lost money on legal, survey or mortgage costs, and 10% had to find another buyer.
Only 7% completed within a month after a chain break, with 29% taking one to three months, 38% waiting four to six months, 21% waiting seven to 12 months and 5% more than a year.
Chris Hodgkinson, managing director of House Buyer Bureau, said: “Property chains have always been one of the weakest links within the traditional sales process, but what’s particularly concerning is that buyer indecision is causing far more problems than mortgages, surveys or the legal process.
“A buyer can seemingly be committed to a purchase and then simply change their mind, and because one transaction is often reliant on several others completing successfully, that single decision can bring an entire chain crashing down.
“For sellers, the consequences can be substantial. They may lose the property they’re trying to purchase, incur additional legal or mortgage costs and, even when the chain can eventually be repaired, find themselves waiting another four, six or even 12 months before finally completing.”
Hodgkinson added: “This is particularly problematic in the current market. Buyers have become more cautious and considered in their decision making and, with greater choice available to them, sellers simply don’t have the same level of certainty that an accepted offer will actually translate into a completed transaction.
“Unfortunately, there’s very little a seller can do to prevent somebody further down the chain from changing their mind and that’s precisely why chain-free buyers are so attractive.
“For homeowners who simply can’t afford to risk their move collapsing, whether because of an onward purchase, financial pressures or a change in personal circumstances, removing the chain altogether and securing a guaranteed sale can provide a level of speed and certainty that the traditional market simply can’t.”
