David Fell, lead analyst at Hamptons, said: “More property sales are falling through later in the transaction, increasing not just the financial cost to buyers and sellers, but the emotional toll as well.
“Fundamentally, this reflects the fact that it now takes an average of 113 days to exchange contracts after an offer is accepted, giving both parties more time to reconsider.
“Deals that haven’t exchanged within the first 90 days are at rising risk; in fact, around half of all fall-throughs now take place after this point.
“This shift is particularly pronounced in the flat market, where the fall-through rate has reached 40 per cent, up from 36 per cent a decade ago.
“Lengthening transaction times are creating particular frustration for buyers.
“They are often receiving information about the property much later in the process than they would have a few years ago, by which point more time and money have already been invested.
“As the process drags on, it is more often the buyers – rather than sellers – who choose to pull out.
“This is usually due to issues raised in surveys and searches, or simply exhaustion with delays.
“By the time a sale collapses, the sunk costs can be substantial.
“Consequently, many sellers are choosing to withdraw from the market entirely rather than relist.”
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