Failed property transactions are draining hundreds of millions of pounds from the UK housing market each year, according to new analysis released by Open Property Group.
The findings show that a significant share of agreed sales never reach completion:
- Around 28–31% of UK property transactions fall through before completion
- More than one million residential sales typically complete each year
- Government analysis estimates that aborted deals cost buyers and sellers over £400 million annually
- Average losses per failed sale are approximately £2,700, with some cases exceeding £5,000
Although annual completion figures suggest a healthy level of activity, industry estimates indicate that they mask a much larger number of attempted transactions. Many of these fail due to broken chains, valuation issues, mortgage refusals, gazumping or prolonged conveyancing delays.
The economic impact of these failures is considerable. Government research tied to home buying and selling reform suggests that wasted expenditure on legal work, surveys, valuations and administrative costs amounts to more than £400 million each year.
Repeated transaction failures also have wider implications for the housing market. They slow down chains, restrict movement and add further pressure on households already managing high costs and uncertain mortgage conditions.
Jason Harris-Cohen, Managing Director of Open Property Group, said headline market statistics do not reflect the lived experience of 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.”
