Thirty one per cent of residential sales fell through before completion in the third quarter of 2016, showing a sizeable increase on the rate recorded earlier in the year.
The figures, collected by bulk buyer Quick Move Now, says the six-month average fall through rate, which smooths some seasonal peaks and troughs, shows fall through running at 29.75 per cent, a rise of 4.57 per cent since the summer.
“Brexit has caused a great deal of uncertainty in the market and this uncertainty can be seen in the fall through rate figures” says Danny Luke, Quick Move Now managing director.
“A huge 44.44 per cent of sales that fell through did so because buyers changed their mind, reflecting the anxiety and lack of confidence present in the market. It also supports the verbal assessment that we've had from estate agents throughout the country, that many house sales collapsed as a result of buyers nervously pulling out of sales in the immediate aftermath of the EU referendum result” he says.
Other reasons cited for house sales falling through include chain break, seller negotiating a better offer from another buyer, survey issues, difficulties securing mortgage finance, and buyer or seller pulling out because they felt the sale was progressing too slowly.
“With Theresa May recently announcing that Article 50 will be triggered by the end of March 2017, the market looks set to have a great deal more uncertainty to contend with over the coming year” claims Luke.