The chain pain and how to beat it
Recent research from specialist lender Together reveals that property chains continue causing substantial disruption across the UK housing market, with implications that extend well beyond individual inconvenience to affect market fluidity, completion timelines, and buyer confidence. For those involved in Darlington's property market, understanding these dynamics provides valuable context for navigating transactions effectively. At Anthony Jones, we are here to assist you better understand the market.
The Scale of the Problem
The findings indicate that 60% of UK homeowners have experienced being caught in property chains, with 24% affected within the past five years alone. Based on English Housing Survey data showing 618,000 household moves annually, Together estimates approximately 49,000 property chains impacted buyers and sellers over the past year.
These aren't brief delays. The research shows 29% of buyers waited two to three months for completion, 7% waited four to five months, and over 5% experienced waits exceeding six months. Current data suggests the period from sale agreed to exchange now averages 109 days – 65% longer than in 2007.
The Psychological Toll
Beyond timeline frustration, chains exact considerable emotional costs. Two-thirds (66%) of those caught in chains reported the experience more stressful than raising their deposit. Over half (57%) said being in a chain discouraged them from making offers on other properties. Most significantly, 59% admitted being tempted to abandon their purchase entirely.
This final statistic merits particular attention. When nearly six in ten buyers consider walking away, chains don't merely delay transactions – they threaten to collapse them entirely, creating uncertainty throughout connected transactions and potentially scuttling multiple sales simultaneously.
Darlington Market Implications
Whilst the research addresses national patterns, Darlington experiences these challenges acutely. The town's property market features substantial chain activity, particularly among established homeowners trading up or downsizing within the local area. Properties in popular family neighbourhoods frequently involve chains connecting multiple local transactions.
The housing industry's campaign to reduce selling timelines to 28 days highlights the gap between aspiration and reality. In Darlington, as elsewhere, achieving such compressed timelines requires coordination across multiple parties – buyers, sellers, solicitors, surveyors, mortgage lenders – with any single delay cascading through connected transactions.
First-Time Buyers and Rental Pressures
Chain delays disproportionately affect first-time buyers, who often occupy the bottom rung of property chains. When transactions above them stall, first-time buyers face extended waits despite having no chain below them. This can be particularly frustrating for those renting whilst attempting to purchase, as they continue paying rent whilst awaiting completion of purchases delayed by factors entirely beyond their control.
These delays also intensify pressure on Darlington's rental market. Prospective buyers unable to complete purchases remain in rental accommodation longer than anticipated, maintaining demand that would otherwise transition to ownership. This contributes to sustained rental market tightness, affecting availability and pricing for other tenants.
Potential Solutions
The research indicates that bridging finance offers one solution, with 25% of those who've used bridging loans reporting it helped break property chains and complete purchases. However, awareness remains limited – 59% of those currently in chains said they'd consider bridging loans if guaranteed quick moves, suggesting many remain unaware this option exists.
Bridging finance isn't universally appropriate. It carries costs and requires careful assessment of individual circumstances, affordability, and exit strategies. However, for buyers with clear onward plans and ability to service short-term finance, it can provide chain-breaking capability that unlocks otherwise stalled transactions.
Practical Considerations for Darlington Buyers and Sellers
Several strategies can help mitigate chain risks:
For buyers: Understanding your position within a chain proves essential. Being aware of how many transactions sit above you, their individual circumstances, and potential complications helps set realistic completion expectations. Maintaining open communication with estate agents and solicitors throughout ensures you're promptly informed of developments affecting your transaction.
For sellers: Evaluating offers involves more than headline price. A slightly lower offer from a chain-free buyer or one with fewer links above them may prove more valuable than a higher offer involving complex, lengthy chains with multiple potential failure points.
For all parties: Choosing experienced, responsive solicitors who communicate proactively rather than reactively can substantially reduce delays. Whilst legal costs vary, the cheapest solicitor rarely proves most cost-effective when delays extend by weeks or months.
Contact Anthony Jones for all Darlington property matters
If you are looking for help with any matter of the Darlington property market, it is best to speak to property professionals. No one knows for sure what is going to happen next, so we won’t claim to have all the answers, but the Anthony Jones team is keen to help you as best we can. If you would like to contact us over housing matters, please call us today on 01325 776424.
