Nearly a third of agreed UK property sales fail to reach completion, costing homeowners and buyers more than £400 million each year, according to analysis referenced by Open Property Group.
The data highlights the extent of the issue:
- Between 28% and 31% of UK property transactions fall through before completion
- Just over one million residential property sales typically complete in a full year
- Government analysis estimates annual losses of more than £400 million from failed transactions
- Average losses per collapse are around £2,700, with some transactions costing individuals over £5,000
While more than a million property sales complete each year, this figure masks a significantly higher number of attempted transactions. Many never reach the finish line due to broken chains, down-valuations, mortgage refusals, gazumping or delays within the conveyancing process.
According to government research linked to home buying and selling reform, the cost of aborted transactions is substantial. Buyers and sellers collectively lose more than £400 million each year through wasted spending on legal work, surveys, mortgage valuations and administrative costs.
Beyond financial loss, repeated transaction failures undermine confidence in the housing market. They extend property chains, slow overall movement and add pressure for households already facing rising costs and uncertainty around borrowing.
Jason Harris-Cohen, Managing Director of Open Property Group, said the headline figures often obscure the reality facing sellers.
“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.”
