Over 25% of house sales fell through in Quarter 4 2015
Data from Quick Move Now indicates that the number of house sales falling through rose by over 8% in the last quarter of 2015. The figures show that the fall through rate went increased from 19.6% in Q3 to just under 28% in Q4.
However, data has also been released for the year-to-date fall through rate giving a more long term picture of how the UK property market is performing and takes into account ups and downs throughout different times of year. Quick Move Now data shows that the year-to-date fall through rate actually remained fairly even throughout the year at or around 29%.
Danny Luke, Business Manager at Quick Move Now, commented:
“The two biggest reasons for house sales falling through in Q4 2015 were buyers changing their mind (27.2 percent) and problems identified at survey or failed renegotiation following a survey (27.2 percent), which is unsurprising in the current market. A lack of properties coming to market has led to prospective buyers having to move very quickly in order to secure a property, and may mean they put an offer in on a less than ideal property through fear that they’ll be unable to find anything else. Chain collapse still featured prominently, with 22.7 percent of property sales falling through as a result of chain issues”
Kate's comments:
Trying to co-ordinate buyers and sellers isn’t an easy task – especially when no-one is, strictly speaking ‘responsible’ for what happens to the whole chain, just part of it. This means that any buyer or seller should take more control of what’s happening and know the questions to ask so they are sure the process is progressing, rather than just leave it up to everyone else.
What's the future for flat sharing?
The CEO of EasyRoommate, Albin Serviant, has been taking a look at the current housing situation in the UK and what has been dubbed in some quarters as the 'sharing generation'. Serviant notes that there are certain pressures on housing in the UK, and London especially, which are pushing potential buyers and private-renters into flat-sharing instead.
It is suggested that the severe lack of property stock plus the increasing volume of young professionals who are required to move at a moment’s notice are amongst some of the main reasons for this phenomenon. Yet ,Serviant illustrates that the 'sharing generation' is not exclusive to young professionals and in fact spans from students to people in their forties with the average age of the group being 27.5 years old.
EasyRoomate data shows that the average rent for a flat share in London costs just under £700 versus the £1,500 per month it costs for the average private renter of a house or a flat. For the increasing number of people that require housing to be affordable and flexible becoming a member of the 'sharing generation' makes complete sense.
Kate's comments:
Although many look on sharing a home as a ‘bad thing’ there is definitely a cultural trend towards this, meaning many are quite happy to share a home. This was highlighted in my report for the BBC Inside Out Housing special where a young trainee solicitor had fantastic accommodation that allowed him to live cost effectively and have enough of his ‘own space’ to rest and concentrate on his studies, while also allowing him to sit down and socialise with like-minded people when he had time. They even have a cleaner come in once a week, not something you usually expect from a room rental!
With such a shortage of properties, it’s not a surprise that people are renting rooms, it’s cheaper and smart landlords have responded to this new demand with fantastically kitted out room rents and homes, looking much more ‘friends than rising damp’!
Rent to Buy homes to come on the market in Dorset
Residents of Sherbourne, Dorset will be the recipients of 33 newly built Rent-To-Buy homes giving tenants the chance to make that first step into home ownership thanks to housing company, Rentplus.
These properties are to initially available to rent at a reduced rate, with a two bedroom house usually costing around £125 per week. Tenants will then be able to purchase the property after five, 10, 15 or 20 years with Rentplus providing a 10% deposit towards the acquisition.
Rentplus Chief Executive, Richard Connolly, said: “We are delighted to be bringing the Rentplus model to Dorset and giving local people the opportunity to buy their own home. The area desperately needs more affordable housing and our innovative model helps meet local housing need as well as establishing permanent homes for people wishing to buy their own property.”
Kate's comments:
There are a lot of initiatives now for wannabe first time buyers, and this is one of the new ones that are starting to appear across England. Before jumping in and taking up this offer, it is worth considering all the schemes such as Help to Buy and Shared Ownership to work out which one is best for your circumstances and available in your area. For more help, here’s my article on First time buyer options.
