"As we enter the new year, both inflation and mortgage interest rates are falling, yet confidence still remains relatively low. There are predictions that the Bank of England may lower its base rate later in the year"
- Danny Luke - Quick Move Now
Of the sales that failed last year, 49% were caused by the buyer changing their mind, attempting to renegotiate, or pulling out after a property survey. A further 19% of failed sales were attributed to chain-break.
Danny Luke, of Quick Move Now explained: “2023 was a challenging year for the property market. Although the predicted market crash never materialised, we did see a significant slowing of the market. According to HMRC, sales volumes fell 22% year-on-year. We also saw a modest price correction.
“One of the biggest obstacles for the property market throughout 2023 was a mismatch between buyer and seller expectations. Buyers were keen to get a bargain, but many sellers were still hoping for near 2021 prices.
“Mortgage interest rates also made things difficult, impacting affordability and encouraging many would-be buyers to delay their move.
“As we enter the new year, both inflation and mortgage interest rates are falling, yet confidence still remains relatively low. There are predictions that the Bank of England may lower its base rate later in the year.
"If this happens, we could well see renewed confidence and enthusiasm in the market. With rent prices continuing to be a challenge for many young people, there is scope for significant demand at the bottom of the market.
“With all of the challenges thrown at the property market over the last 12 months, it’s little surprise that the biggest cause of failed property sales is the buyer changing their mind or trying to renegotiate the purchase price. Chain-break has also had a big impact on the number of sales that have fallen through.
"During the post-COVID property market boom, a chain-break could quickly and easily be fixed. That’s not the case in a slower property market. It can take weeks or even months to tie up another sale, which will often lead to the whole chain collapsing.
“Buyer uncertainty is also showing in the number of property sales falling through due to slow progress. We’ve heard stories of buyers seeming very keen at first, but then getting cold feet and going quiet. Sellers are only happy to hold on for so long before they get fed up and pull out of the sale to put their property back on the market.”
If you’re hoping to secure a property sale this year, there are a few things you can do to bolster your chances of success.
Price your property attractively
Be realistic about how the market is performing in your local area and what else is on the market. When homeowners are competing for buyers, you need to make sure your property is well-presented and well-priced.
Choose a proactive estate agent
In a slow property market, agents need to be more proactive to secure a sale. This means vetting buyers well, gathering thorough feedback after viewings, and working hard to achieve the best price possible.
Keep communicating
Your solicitor and estate agent will play a key role in effective communication with your buyer. It’s important that any concerns are addressed as quickly as possible to maximise your chances of a successful sale.
Be open to compromise
If your buyer attempts to renegotiate the purchase price, it’s important to listen to their justifications for doing so. If the property survey has highlighted issues they weren’t aware of, it’s advisable to work with your buyer to find a mutually acceptable solution. Your estate agent should be able to advise whether your buyer’s request is reasonable or not.
Consider chain-break services if you’re on a deadline
If you’re up against a tight deadline, or you’re worried your property chain is about to collapse, you might want to explore professional chain-break services.
