We all know that property deals can collapse. When buyers and sellers are part of a chain, there is always a risk that issues out of their control can work against them.
However, it seems as though there is a high number of property deals collapsing this year.
A recent study indicates that from the start of the year until 17th March, 53,856 property sales have collapsed. In information provided by property data consultancy TwentyEA, this equates to a housing deal collapsing every two minutes.
If this trend continues many buyers and sellers will face problems
There are concerns that if this trend continues for the rest of the year, there will be more than 100,000 deals collapsing before the halfway point of the year, and in total, between 200,000 and 250,000 property transactions will collapse in 2022.
Gazeal chief executive Bryan Mansell was reported by Property Reporter as saying; “This is just ridiculous when you consider the alternative solutions out there, which help to lower the risk of fall-throughs from occurring. Not only is there a greater offering of upfront information, so buyers and sellers alike know where they stand and don’t face any nasty surprises further down the line, but also digital reservation agreements, modern and traditional auctions, and other schemes which can be transformative for a property transaction by helping to commit both buyer and seller to a deal.”
Listing changes are coming to the housing market
There are new measures set to be introduced by Trading Standards which people hope will strengthen the market, but Mansell doubts these steps will go far enough.
By the end of April 2022, property listings will have to include:
- The council tax band or rate (this applies to sales and lettings
- The property price
- Tenure information
You will start to see this information on property portals in the coming weeks.
Mansell also said; “The recent announcement by National Trading Standards is very welcome and has been a long time coming. But the housing market, and all of those who operate within, are still suffering from high numbers of deals collapsing. There are solutions for this exact problem right here, right now, and the industry needs to get better at offering these solutions to the public to prevent or significantly lower the risks with private treaty sales.”
Mansell believes the government; Trading Standards and the industry need to go further and faster with the three-stage plan.
Mansell concluded by calling for more action from the Government, Trading Standards and the housing sector. He said; “Faster action is required if we don’t want to see the number of fall-throughs remaining stubbornly high. It is better for professional estate agents to lead the change - after all, they are the experts in their markets. I’ve said it plenty, but more upfront information is a win-win-win as far as I can see. We need to support all parts of the transaction if we truly want to improve the home buying and selling process, and make it faster, more robust and more transparent.”
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.
