Brexit uncertainty has affected UK home sales, research suggests

Around a third of home sales in the UK fell through before completion in the third quarter of 2016 and this may be due to Brexit uncertainty, new research suggests.

Some 31% of sales did not complete in the quarter and the six month average figures show that 29.7%% fell through, a rise of 4.57% since the end of the second quarter.

Uncertainty caused by the decision to leave the European Union may be behind the figures, according to the research from independent home buyer Quick Move Now.

‘As the first full quarter since the results of the EU referendum, the figures from the third quarter offer an important insight into how Brexit has affected the stability of UK property sales. Brexit has caused a great deal of uncertainty in the UK property market, and this uncertainty can be seen in the fall through rate figures,’ said Danny Luke, Quick Move Now’s managing director.

He pointed out that 44.44% of the sales that fell through did so because buyers changed their mind, which he believes is reflective of the anxiety and lack of confidence that are currently present in the property market.

‘It also supports the verbal assessment that we’ve had from estate agents throughout the country, that many house sales collapsed as a result of buyers nervously pulling out of sales in the immediate aftermath of the EU referendum result,’ he explained.

However, as the initial shock of the EU referendum result begins to subside, he expects to see a certain level of confidence return to the property market over the next quarter but warned that how long that confidence lasts will largely depend on how the process of managing the UK’s exit from the EU progresses.

Other reasons cited for house sales falling through included chain break, seller negotiating a better offer from another buyer, survey issues, difficulties securing mortgage finance, and buyer or seller pulling out because they felt the sale was progressing too slowly.