At Stones Residential, we know the problems that often beset property purchases.
If you are looking to minimise the problems that impact buyers and sellers, we can help you.
Fall-throughs occur in the housing market
Recent analysis of the property market indicates fall-throughs are increasing. In the third quarter of 2021, 11% of property sales fell through before completion. In the last quarter of 2021, the figure rose to 34%.
There are many factors associated with fall-throughs, but property chains are a significant factor. The string of buyers and sellers connected together can be lengthy, and it creates a precarious position for property buyers.
In a chain-free purchase, the average conveyancing time drops to four weeks as opposed to 10. This represents a 60% reduction in time.
It is easy to see why buyers would prefer a chain-free purchase, but these deals inevitably cost more.
Analysis of the market by HBB Solutions finds the average cost of a chain-free property is £244,928. This is £23,131 higher than the average cost of buying a home.
With only around 10% of the homes for sale being chain-free, it is easy to see why there is a premium for these properties.
National differences for chain-free homes
The areas where the average price of chain-free property was significantly higher than average homes include:
- Nottingham, with a premium of £47,251
- Liverpool, where there is a premium of £46,373
- London property holds a premium of £35,438 for chain-free houses
- Glasgow carries a premium of £20,818
- Newcastle chain-free homes carry a premium of £17,972
It is understandable that London homes are of most interest to us, and it is interesting to more that the premium in London isn’t as large as it is in some cities. When you take on board homes in Belsize Park are more expensive than others to start with, this is welcome news.
Do some areas of the country have more chain-free homes?
The same study found some parts of the country where chain-free homes are more prevalent, including:
- Manchester, where 26% of the current property stock is listed as chain-free
- Liverpool, with 21% of the current stock listed as chain-free
- Birmingham, with 20% chain-free
Chris Hodgkinson, Managing Director of HBB Solutions, commented: “The vast, vast majority of transactions that we’re called in to prevent from collapsing are in peril due to problems somewhere along the chain. It’s essentially a real-life property themed game of Jenga, where one small hiccup somewhere down the line can scupper the sale of a completely unrelated home. It’s an extremely nerve-racking, stressful place to be and so it’s hardly surprising that buyers are willing to pay well above the odds to secure a chain-free home. In fact, once you consider the potential time and money saved avoiding potential chain collapses, you’re probably getting a better deal despite paying a higher initial asking price.”
Contact Stones Residential for all your Belsize Park property needs in 2022
If you would like to arrange an appointment to help you negotiate the local housing market, please contact Stones Residential today by calling us on 020 7483 0685 or emailing belsizepark@stonesresidential.co.uk.
