New figures highlighted by Open Property Group show that failed property transactions are costing UK homeowners more than £400 million annually, with a large proportion of agreed sales collapsing before completion.
Industry-wide data illustrates the scale of the issue:
- Between 28% and 31% of agreed UK property sales do not complete
- Just over one million residential property transactions typically complete in a full year
- Government analysis estimates more than £400 million is lost annually on failed transactions
- Homeowners lose an average of £2,700 per collapse, with some losses exceeding £5,000
While annual completion figures suggest stability, they conceal a far greater number of attempted transactions. Many of these break down due to chain failures, down-valuations, mortgage refusals, gazumping or slow conveyancing processes.
The financial burden of failed deals is significant. According to UK Government analysis linked to housing reform, buyers and sellers collectively lose more than £400 million each year in unrecoverable costs such as legal fees, surveys, mortgage valuations and administration.
Beyond the direct financial losses, repeated fall-throughs reduce confidence in the housing market. They lengthen chains, slow overall movement and add to stress for households already dealing with high living costs and changing interest rates.
Jason Harris-Cohen, Managing Director of Open Property Group, said the figures expose a mismatch between official market data and the reality faced by many sellers.
“On paper, transaction volumes can look reassuring, but they don’t show how many people are stuck in failed sales for months, paying fees and living in limbo,” said Harris-Cohen.
“We speak to homeowners every day who have lost thousands of pounds through no fault of their own because a buyer pulled out late or a chain collapsed. For many, the hidden cost isn’t just financial, it’s emotional stress, delayed life plans and growing uncertainty. When sales fall through repeatedly, trust in the system erodes, and people begin to question whether the traditional process is fit for purpose in today’s market. That loss of confidence has wider consequences, slowing movement across the housing market and discouraging sellers from re-listing quickly. Over time, this reduces choice for buyers and ultimately weakens the resilience of the entire property market.
“For homeowners under time pressure, whether due to financial strain, probate timelines or personal circumstances, these delays can be devastating. Many are left absorbing repeated costs while facing mounting uncertainty, with little recourse when transactions collapse late in the process. Without meaningful reform or alternative routes to sale, the imbalance of risk remains firmly stacked against sellers, who continue to pay the price for a system that fails to deliver certainty.”
