A new study that has just been published shows the cost to the UK economy from failed property transactions is around £2 billion a year.
This study is the work of the Open Property Data Association (OPDA). This organisation surveyed 5,000 people who have recently bought or sold a home. What the results reveal is that 58% of property transactions fall apart at a late stage in the process – when an offer has been made and accepted. The cost for each of these failures is roughly £2,830, which adds up to £1.97 billion per year.
Most of those costs are made up of mortgage expenses, property survey charges, and fees for professionals like mortgage advisors and solicitors in North Wales and elsewhere. Furthermore, this is not the only way in which buyers are inconvenienced.
The study makes it clear that they suffer wasted time too. The average amount of time that is spent pursuing transactions that fall apart is three months. One out of every six transactions collapses at the four-month point, while for one out of every 10 it is five or more months.
The consequence for 43% of survey respondents was emotional stress. Another 41% said it forced them to put plans on hold. Maria Harris from OPDA said the study exposes a property market that is letting the public down. She called for key data concerning properties to be made available at the earliest stage.
At Bennett Smith Solicitors, we offer expert property conveyancing in North Wales. Call us if you want a quote.
