New research from Open Property Group suggests that failed property transactions are costing UK homeowners hundreds of millions of pounds each year, with a significant proportion of agreed sales never reaching completion.
Industry data paints a stark picture of the problem:
- Between 28% and 31% of agreed property sales in the UK fall through before completion, according to multiple industry sources
- Just over one million residential property transactions typically complete each year
- Government estimates indicate that aborted sales cost buyers and sellers more than £400 million annually in wasted fees
- The average loss per failed transaction is around £2,700, with some cases exceeding £5,000
While more than one million residential property transactions are completed in a typical year, this headline figure conceals a much larger volume of attempted sales. Many of these collapse due to broken chains, down-valuations, mortgage refusals, gazumping or delays within the conveyancing process.
The financial consequences of these fall-throughs are significant. UK Government analysis linked to reforms of the home buying and selling process estimates that buyers and sellers collectively lose more than £400 million each year on non-recoverable costs such as legal fees, surveys, mortgage valuations and administration.
Beyond direct financial loss, failed transactions also disrupt market flow. They reduce liquidity, extend property chains and increase stress and uncertainty for households already facing high living costs and volatile mortgage rates.
Jason Harris-Cohen, Managing Director of Open Property Group, said the data highlights a gap between headline transaction figures and the reality many sellers face.
“On paper, transaction volumes can look reassuring, but they don’t show how many people are stuck in failed sales for months, paying fees and living in limbo,” said Harris-Cohen.
“We speak to homeowners every day who have lost thousands of pounds through no fault of their own because a buyer pulled out late or a chain collapsed. For many, the hidden cost isn’t just financial, it’s emotional stress, delayed life plans and growing uncertainty. When sales fall through repeatedly, trust in the system erodes, and people begin to question whether the traditional process is fit for purpose in today’s market. That loss of confidence has wider consequences, slowing movement across the housing market and discouraging sellers from re-listing quickly. Over time, this reduces choice for buyers and ultimately weakens the resilience of the entire property market.
“For homeowners under time pressure, whether due to financial strain, probate timelines or personal circumstances, these delays can be devastating. Many are left absorbing repeated costs while facing mounting uncertainty, with little recourse when transactions collapse late in the process. Without meaningful reform or alternative routes to sale, the imbalance of risk remains firmly stacked against sellers, who continue to pay the price for a system that fails to deliver certainty.”
