One in six transactions collapse after offer acceptance, wasting an average of three months per deal
More than half of residential property transactions in the UK fall through after an offer has been accepted, costing the economy an estimated £2 billion annually, according to new research from the Open Property Data Association (OPDA).
The study, based on a survey of 5,000 recent home movers found that 58% of transactions collapse at the offer stage. With approximately 1.2 million residential transactions completed each year, and the average failed transaction costing buyers and sellers around £2,830 in direct expenses such as legal fees, surveys and mortgage costs, the total annual economic impact could reach £1.97 billion.
The OPDA research found that the average time wasted on each failed transaction is around three months. One in six transactions collapse after four months, and one in ten falls through after five months or more.
When asked about the effects of a collapsed sale or purchase, 43% cited emotional stress as the primary impact, while 41% said their plans were significantly delayed. The effects were most pronounced among older movers, with nearly six in 10 (59%) of those aged 55 and over reporting high levels of emotional stress.
The findings come as the housing market faces ongoing pressure from higher interest rates, tighter affordability conditions and extended transaction timelines — all of which increase the likelihood of deals failing before completion.
"These figures lay bare a housing market that is failing consumers at every stage," said Maria Harris (pictured right), chair of the Open Property Data Association. "Far too many transactions collapse because crucial information only comes to light weeks or even months after an offer is made. By then, buyers and sellers have already invested significant time, money and emotional energy.
"Providing upfront, standardised property data through digital property packs would transform this process. When material information is available at the point of listing, buyers can make informed decisions, issues can be identified early, and far fewer transactions fall apart late in the process.
"Upfront property data isn't about adding bureaucracy, it's about bringing transparency, certainty and trust back into the housing market. By embracing digital property packs, we can reduce fall throughs, shorten transaction times and create a fairer, more resilient system that works for everyone."
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