The latest report from data analysts TwentyEA reveals average exchange times in regions across the UK.
The north-east of England is the quickest region to reach exchange, with 58.4% of property transactions progressing to this stage within three months, closely followed by Yorkshire and The Humber, where 55.6% of sales reach exchange within three months. East Midlands, West Midlands and the north-west of England all hover around the middle of the table, with 50.4%, 49.9% and 47.6% respectively.
London sits at the slowest end of the scale, with just 31.1% of transactions in outer London 35.4% in inner London exchanging within three months.
In Scotland, 72% of sales reach exchange within three months.
The findings, published in TwentyEA’s latest Property & Homemover Report, reveal a “striking” regional divide, director Nick Huntley said.
“Differences in property type, transaction chains and the profile of buyers and sellers are all likely to play a role, demonstrating the significant bearing geography can have on how quickly a transaction progresses,” he explained.
“With Scotland outperforming England by a country mile yet again, the figures highlight the shortcomings of England’s slow and stagnant legal system, which is why we’ve welcomed the government’s reforms.”
TwentyEA also looked at price bands of properties and examined how time to exchange affected each one. It found lower-priced properties are progressing to exchange considerably faster than more expensive homes, with more than half (54.2%) of transactions below £200,000 reaching exchange within three months.
This compares with 48.4% of properties priced between £200,000 and £350,000, falling to 39.8% for homes between £350,000 and £1 million and just 38.2% for properties worth £1 million or more.
Huntley said: “Lower-priced properties carry their momentum through to exchange more effectively. With a broader pool of buyers at the more affordable end of the market, these sales may be better placed to progress quickly, particularly with a higher proportion of agile first-time buyers who have no property to sell.
“Higher-value transactions can be more exposed to changes in financing, affordability and buyer circumstances, alongside additional considerations around original listed features, land boundaries and other complexities commonly associated with properties at the upper end of the market.”
The divide becomes even more significant after five months, when three-quarters (75.6%) of sub-£200,000 transactions have reached exchange, compared with 58.3% of £1 million-plus sales.
At the other end of the process, 8.1% of £1 million-plus transactions take seven months or longer to reach exchange, more than double the 3.3% recorded for properties below £200,000.
Finally, TwentyEA examined legal tenure and how it impacted time to exchange. It found freehold properties reached exchange considerably faster than leaseholds, with 46.4% of freehold transactions reaching this stage within three months, compared with just 34.9% of leaseholds.
The gap widens slightly by four months, when 59% of freehold transactions have reached exchange compared with 47.3% of leaseholds, a difference of 11.7 percentage points.
By five months, seven in 10 (70.4%) freehold transactions have progressed to exchange, compared with 60.4% of leaseholds.
However, the difference narrows substantially by six months, when 96% of freeholds and 94.3% of leaseholds have reached exchange. Leasehold transactions are also more likely to take seven months or longer, at 5.7% compared with 4% of freeholds.
“The figures highlight the additional time that can be involved in buying and selling a leasehold property,” Huntley said. “With more parties and paperwork often at play, leasehold transactions can be more challenging, which may contribute to the gap in exchange times compared with freehold homes.”
