Property fall-throughs increased by 6.6% during the second quarter of 2026, according to data analysed by House Buyer Bureau, placing additional financial strain on the UK housing market.
An estimated 71,959 residential transactions collapsed between April and June 2026, compared to the previous quarter. The total cost of failed transactions rose from £239.7 million in Q1 to £257.9 million in Q2, an increase of more than £18 million.
The analysis, based on TwentyCi data, shows that while fall-through volumes remain 8.7% lower than the same period in 2025, the quarterly increase indicates ongoing volatility in the transaction process.
Rising costs per transaction
The average cost of a fall-through reached £3,584, up 0.9% from the previous quarter and 2.8% higher than the same period last year. This suggests that while the frequency of failed transactions has declined year-on-year, the financial impact of each collapse continues to increase.
Chris Hodgkinson, Managing Director of House Buyer Bureau, said: “The latest increase highlights just how fragile the process of buying and selling a home can remain. The fact that the average cost of a failed sale has also continued to rise means that every collapse carries a significant financial consequence for those involved.”
The data comes amid broader uncertainty in the UK property market, with government initiatives targeting first-time buyers and ongoing challenges related to affordability and economic conditions.
Market implications
For sellers, fall-throughs represent wasted time, additional costs, and the need to relist properties after making plans based on anticipated completions. The rising average cost per failed transaction suggests that expenses associated with conveyancing, surveys, and legal fees continue to escalate.
Hodgkinson noted that affordability pressures, changing buyer circumstances, and wider economic uncertainty continue to influence transaction stability. The figures indicate that despite improvements compared to 2025, the market remains susceptible to disruption.
The increase in fall-throughs contrasts with recent activity in the commercial and refinancing sectors, where significant portfolio deals and refinancing transactions have proceeded successfully.
The data suggests that while the residential market has shown resilience compared to 2025 levels, the second quarter of 2026 saw renewed pressure on transaction completion rates, with both buyers and sellers facing increased financial and operational risks.
