Failed transactions rose by nearly 10% between January and March
The cost of collapsed property sales to the UK housing market rose by almost £21 million in the first quarter of 2026, according to the latest Fall-Through Index published by House Buyer Bureau.
The report, which draws on data from TwentyCi, found that an estimated 67,489 residential transactions fell through between January and March, a rise of 9.8% on the final quarter of 2025. Despite the quarterly rise, the figure remains 12.1% below the number of fall-throughs recorded in the first quarter of 2025.
The increase in failed transactions pushed the estimated total cost to the housing market up from £218.3 million in the fourth quarter of 2025 to £239.2 million in the first quarter of 2026.
House Buyer Bureau's figures, which factor in inflation, estimated rises in legal fees and recent house price data, showed that the average cost of a fall-through to a seller was £3,544 in the first quarter, a fall of 0.2% on the previous quarter. That figure is 2.1% higher than the average recorded during the same period in 2025.
According to the report, the modest drop in the average cost per fall-through has been outweighed by the greater number of transactions collapsing, adding further strain to the housing market's finances.
“After a significant reduction in fall-through activity at the end of last year, it's disappointing to see the number of collapsed transactions move back in the wrong direction during the opening months of 2026,” said Chris Hodgkinson (pictured right), managing director at House Buyer Bureau.
“While the average financial hit associated with a failed sale has remained broadly stable, it's the increase in the number of transactions falling apart that is the real concern. Every fall-through represents wasted time, uncertainty, and additional expense for those involved, particularly sellers who often find themselves having to restart the process from scratch.
“The challenge is that many of the factors driving fall-throughs remain difficult to control. Affordability pressures, changing buyer circumstances, and wider economic uncertainty can all derail a transaction at the last minute. As a result, certainty continues to be a key priority for many homeowners. For a growing number of sellers, reducing the risk of a sale collapsing is becoming just as important as achieving the highest possible price.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
