Get to grips with how the market is currently performing
As the UK property market experiences, a decline in the number of collapsed transactions, we at Anthony Jones aim to provide you with valuable insights into this trend. In this article, we analyse the latest data from the House Buyer Bureau, shedding light on the implications of transaction failures, their average cost, and the overall impact on the property market. Understanding these factors will empower you to navigate the market with confidence.
Examining the Average Cost of Transaction Failures
During the first quarter of 2023, the average cost of a transaction failure increased by 2.1% compared to the previous quarter. Presently, the average cost stands at £3,370 per transaction. This figure underscores the financial implications and emphasizes the importance of minimizing risks and uncertainties throughout the buying and selling process.
Cooling Housing Market Conditions
Since September of last year, the housing market has experienced a cooling effect, with reduced market activity from both buyers and sellers. This shift comes after the previous surge in activity fuelled by pandemic-induced market conditions. Although this change may present challenges, it has also yielded some positive outcomes, notably a decrease in the volume of transaction failures.
A Promising Decline in Transaction Failures
In the first three months of this year, only 63,970 transactions fell through, marking a 16% quarterly decline compared to the final quarter of 2022. This reduction signifies a welcome trend, building on the previous quarter's decline. It is worth noting that this current figure represents a significant decrease from the market peak of 90,188 transaction failures observed in Q3 2022.
Implications for Buyers and Sellers
The decline in transaction failures offers valuable implications for both buyers and sellers. Buyers can find reassurance in the improved stability and reliability of the market. This decrease in failures indicates a more secure and efficient buying process, reducing the risk of unexpected setbacks and financial losses. For sellers, the decline reflects an increased likelihood of successfully completing transactions, translating into smoother sales and minimised disruption.
Navigating the Market
While the decline in transaction failures is promising, it is essential for buyers and sellers to remain vigilant throughout their property journeys. Engaging with an experienced estate agent, such as Anthony Jones Properties, can provide invaluable guidance, ensuring proper due diligence and comprehensive understanding of the market dynamics. By leveraging our expertise, you can confidently navigate the evolving landscape and make informed decisions.
The recent decline in property transaction failures signifies a positive development in the UK housing market. With a reduction in the number of collapses and an average cost of £3,370 per transaction, buyers and sellers can benefit from increased stability and confidence. As a trusted estate agent, we are committed to assisting you in navigating the market successfully. By staying informed and partnering with our team, you can approach your property transactions with optimism and maximise your chances of a smooth and successful experience.
Chris Hodgkinson, managing director of House Buyer Bureau, said: “Market activity has been gradually declining since the closing stages of last year and we’ve seen these more subdued market conditions continue during the first quarter of this year. A silver lining to this notable reduction in sales volumes has been a consequential drop in the number of transactions collapsing and this, on the face of it, is a positive. However, the individual cost of a fall through has actually increased and it’s also fair to say that while the total number of fall throughs is on the slide, current market conditions are ripe for an increased threat of a sale collapsing.”
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.
