House Sales Fall Through

The difficulties in the Housing market have caused many home sales to fall through and not be completed. The Bank of England said that in some areas upto 40% of house sales were falling through. This is because:

• Mortgage offers being withdrawn by banks and lenders.
• Fears over falling house prices are causing buyers to back out.
• People unwilling to accept lower offers.

In times of rising house prices, the biggest problem facing homeowners is the possibility of getting gazumped (people coming in with a higher offer before contracts are exchanged). But, with house prices falling, the problem is now people dropping out.

The UK housing market has long suffered difficulties in completing house purchases. In today’s climate lengthy delays mean that house chains can easily fall through. It only takes one nervous buyer to pull out causing problems throughout the housing chain.

This is another reason to try and speed up the process of selling houses

The only good news if for landlords letting out houses to tenants. With demand for buying a house collapsing, demand for renting has soared by 38% in the past year.