New research by estate and letting agent, Barrows and Forrester, has looked at where a chain-free property is most in-demand amongst UK homebuyers, as well as which UK cities are home to the most chain-free properties for sale.
What is a property chain?
A property chain is when the transaction involves more than one buyer. For example, if you were a buyer, buying from someone who was also buying from another seller, this would be classed as a chain. Although this sounds straight forward enough, a property chain can be problematic and cause huge delays for those involved. In some instances, delays can go on for months and in the worst cases, the transactions can actually fall through.
This is generally why chain-free properties and first-time buyers are favoured as there is no other party involved who can delay or scupper the transaction. While chain-free transactions are still susceptible to delays during the final legal stages of a sale, they still reduce the overall time a transaction can take.
Chain-free Demand
The research confirms just how much of a demand there is for chain-free properties with 50% of all the chain-free homes listed for sale across the UK already being snapped up by buyers.
The data also shows that of the 25 major UK cities examined, Plymouth has the highest level of homebuyer demand for chain-free properties with 66% of all chain-free homes listed for sale in the city already been sold subject to contract.
Plymouth is closely followed by Bristol (65%), Sheffield (64%), Portsmouth (62%) and Newport (62%).
Chain-free Availability
As well as homebuyer demand, the firm also looked at which cities were home to the most chain-free properties for sale as a percentage of all properties listed, to see where offered the best chance of homebuyers and sellers reducing their transaction time.
Manchester topped the list with 48% of all homes listed being chain-free. Cambridge wasn’t far behind with 47% of available properties on the market coming without a chain, while Belfast (46%), Liverpool (45%) and Southampton (44%) were also in the top five.
For those homebuyers keen to evade a property chain, the area to avoid is Glasgow, with only 7% of homes listed being chain-free. Edinburgh was the second area with the least chain-free properties at just 10%. Aberdeen (17%), Newport (28%) and Bradford (31%) were also home to the lowest number of chain-free options available.
James Forrester, Managing Director of Barrows and Forrester, commented: “A chain-free transaction has always been the holy grail of home selling and there’s nothing worse than having your life plans put on hold due to a transaction taking place further up or down the chain.
"However, with the current stamp duty holiday bringing huge delays as buyers flood the market, the time it’s taking to transact has grown considerably and so a chain-free property is more desirable than ever.
"Our research shows that the chance of finding one differ drastically depending on which city you are house hunting, and if you do find one, demand is high so it’s best to act quickly if you want to secure it.”
The research looked at current property stock listed on the major portals across 23 major cities, before then looking at what proportion of this stock offered the chance of a chain free sale.
Chain free properties mean that there are only two parties involved in the transaction, you as the buyer and the current owner. There are no onward sales to worry about and the seller isn’t reliant on buying another home before they can sell to you. As a result, chain-free sales are not only less stressful, but they can also take a lot less time.
The figures from Yes Homebuyers show that Cambridge is the chain-free property hotspot of the UK. Currently, a huge 46% of all homes listed in the city offer the chance of a chain free sale, a less stressful transaction and a quicker sales process.
Belfast is home to the second-highest number of chain-free homes for sale, with 44% of all properties currently listed for sale online coming without a dreaded chain.
Sheffield, Manchester and Liverpool share the accolade of the third best city for a chain-free sale, with 42% of current property stock listed as such.
Southampton and Cardiff were also home to a notable level of chain-free homes with 40% to 41% of all stock listed as chain-free.
It’s not good news for those looking for a chain-free transaction in Scotland though. Both Glasgow and Edinburgh rank last with just 7% of all homes currently listed for sale marked as chain-free.
Aberdeen also scored low at 18% along with London (32%).
Matthew Cooper, Founder & Managing Director of Yes Homebuyers, commented: “Being stuck in a chain can be an incredibly stressful process when selling or buying a property and waiting for the stars to align can drag on for months on end, before the whole thing comes crashing down and your back to square one.
"A high percentage of the sellers that opt to use our home selling platform do so to avoid getting stuck in a chain. For those that have suffered it before, accepting a marginally lower price is well worth it to avoid the uncertainty and delays the traditional selling process and a lengthy chain can bring.
"The good news is, there are plenty of chain-free properties out there for homebuyers looking to avoid the current market delays caused by heightened demand since the introduction of the stamp duty holiday. While a chain-free sale won’t help you skip the legal backlogs that are building at the back end of the transaction process, it will certainly reduce the time it will take for the transaction to reach its final stages."
