UK real estate is a popular investment class for those seeking a secure asset able to weather market shocks and periods of economic volatility. The eagerness to invest in real estate over a number of decades has resulted in the steady growth of average national house prices. Nationwide’s latest House Price Index revealed that the average price of a UK home rose by 2.6% in the year to April 2018, reaching £213,000. Moreover, house prices are expected to increase by 18% over the next five years, making property a leading asset when it comes to the delivery of long-term returns.
However, while the UK property market may present lucrative investment opportunities across the residential and commercial sectors, limited supply and rising demand have made the process of buying a property extremely competitive. As a result, the chance of becoming stuck in a delayed or broken property chain has become a growing reality for the majority UK buyers and sellers.
In Q1 2018, the number of house sales falling through before completion reached 38.8% – the highest it has been in over a decade. To understand why the number of collapsed property sales is on the rise, Market Financial Solutions has today released a new report titled “Broken Chains: Why are UK property deals falling through?”
Having surveyed a nationally representative sample of 2,000 UK adults, the report uncovers the common reasons leading to a house purchase falling through. With access to finance being identified as a key barrier, the findings also reveal how the UK perceives alternative finance opportunities as a way of avoiding collapsed property chains.
Click here to download a copy of MFS’ latest report.