One of the largest conveyancing firms in the UK shows a 29% fall through in property transactions in the first half of the year - up from just 21% three years ago.
Whilst a buyer and seller may never be totally honest as to why they choose to withdraw, a simple change of mind is frequently sighted as a reason.
But economic uncertainty is the speculated major reason, as buyers withdraw due to fears regarding their own finances and job security, with a reported one in ten sales falling through because the buyer is unable to secure a mortgage.
Of course adverse survey reports are also reported as a continuing factor for abortive deals.
In addition the Telegraph reports that "the elimination of Home Information Packs in the second half of 2010 was a major factor for the increase in sales falling through. Sellers are now able to test the market without having to pay any upfront costs, bar an Energy Performance Certificate (EPC) which says how energy efficient a house is, and is available for around £40".
But with 'cheap conveyancing' littering the internet, and many Estate Agents referring every customer they can get their hands on to use their preferred conveyancers despite many having a very poor reputation - the quality of a buyer or seller's chosen conveyancer will also play a major part in whether a transaction unnecessarily aborts.
Clearly those conveyancers who are prompt in their dealings and who bring their client to an exchange without undue delay will help minimise the chance of either party getting cold feet. But the following factors may also play a part in unnecessary delays, and so it is worth considering these when you next choose your conveyancing firm
- the conveyancer is part of a factory set up with various people acting on your transaction with poor communication
- ineffective holiday cover
- operating hours strictly 9-5pm
- their standards of practice have not yet been approved by Lexcel ( http://www.lawsociety.org.uk/productsandservices/lexcel.page )