£500m wasted each year on failed home sales
With around one quarter of housing transactions collapsing, the HomeOwners Alliance has suggested that over £500m is lost each year on failed attempts to buy and sell their properties in the UK. The figures were based on new analysis of government figures.
According to the ONS, during 2016 there were 1.23m residential property transactions. With around a quarter of transactions failing this results in a loss of between £695 and £744 for buyers, and £582 and £740 for sellers.
To remedy the situation the HomeOwners Alliance has called for a more standardised and legally binding “reservation agreement”. With this in place the home buy and seller commit to being “genuine” to proceed with the transaction, and to pay the other side £1000 if they pull out.
Full story available from Property Reporter: http://www.propertyreporter.co.uk/property/500m-lost-each-year-on-failed-home-sales.html