Estate agents lost £1.27bn in fees from fall-through...

Fall throughs are estimated to have cost UK estate agents £1.27bn in 2022, new research suggest.

Upfront information provider Moverly looked at how many property transactions are thought to have collapsed in 2022 and what this means in terms of the cost incurred for both estate agents and conveyancers.

An estimated 31% of transactions are thought to fall-through each year and Moverly said this equates to 315,652 sales collapsing last year.

With the average estate agent earning £4,034 per transaction, based on the average house price of £284,100, combined with a typical agent fee of 1.42%, that’s a collective loss of fees totalling £1.27bn.

It’s not just the agents that miss out on earnings from the transaction.

Conveyancers typically make £2,239 per transaction when representing the buyer, or £1,069 for the seller.

As a result, Moverly estimates that conveyancers could have lost out to the tune of £706.7m due to fall throughs in 2022, while those acting for sellers are thought to have lost £533m.

Moverly co-founder Ed Molyneux said: “When a home purchase falls through it isn’t just stressful for all involved, it’s a costly process that takes billions out of the pockets of agents and conveyancers.

“Even when property purchases go smoothly it still tends to be a long drawn-out process, as the home needs to be listed, surveys need to be conducted and in many cases mortgage finance needs to be secured before buyers and sellers sign on the dotted line.

“This provides ample time in which circumstances can change, or both buyer or seller can have a change of heart, allowing frustrations to build across the chain.

“While estate agents can lower the chances of fall-throughs by being professional and efficient throughout, a proactive approach in securing the information required for a transaction upfront can also help minimise the chances of a fall through.”