UK Homebuyers Face £2,000 Losses as Property Chains Collapse, Barclays Study Reveals
Broken property chains are imposing significant financial burdens on UK homebuyers, with new research from Barclays indicating an average extra cost of £2,127 per transaction. The study highlights the acute stress and unexpected expenses that arise when property chains break down, affecting nearly half of those involved in such transactions over the past three years.
Survey Findings on Chain Complications
According to a Barclays survey, approximately 32% of individuals who purchased or sold property in the last three years were part of a property chain. Among these, a staggering 46% experienced delays or complete failures due to chain-related issues. The financial impact includes wasted survey costs and additional solicitor fees, compounding the already stressful process of buying a home.
Tactics Like Gazumping and Gazundering Exacerbate Problems
The research uncovered that some transactions collapsed due to tactics such as gazumping, where sellers accept a better offer at the last minute, and gazundering, where buyers reduce their offer just before completion. Shockingly, several respondents admitted to attempting these strategies themselves, leading to further breakdowns in the sales process. These practices not only disrupt chains but also erode trust among buyers and sellers.
Mortgage Data and Market Insights
Barclays' mortgage data reveals that the typical UK deposit stood at £59,057 last month, with first-time buyers facing a slightly higher average of £62,272. Jatin Patel, head of mortgages, savings and insurance at Barclays, commented on the dual challenges movers face, stating, "Movers often face battles on two fronts as the abundance of long property chains adds acute stress into the process." Julien Lafargue, chief market strategist at Barclays, added that the UK housing market must contend with a mixed macroeconomic picture, including slowed growth in late 2025 and a softening labour market, though consumer resilience suggests a potential rebound in 2026.
Expert Analysis on Transaction Delays
David Fell, lead analyst at Hamptons, emphasized the frustration caused by lengthening transaction times. He noted, "Lengthening transaction times are creating particular frustration for buyers. They are often receiving information about the property much later in the process than they would have a few years ago, by which point more time and money have already been invested." Fell further explained that buyers are more likely to withdraw from sales due to issues raised in surveys or exhaustion from delays, leading to substantial sunk costs. Consequently, many sellers are opting to withdraw from the market entirely rather than relist their properties.
Methodology and Broader Implications
The Barclays study combined its own mortgage data with a survey of 2,000 individuals across the UK, conducted by Opinium Research in January and February. The findings underscore the broader implications for the property market, including increased financial risks and emotional strain for participants. As chains continue to pose challenges, homebuyers and sellers are urged to prepare for potential setbacks and seek professional advice to navigate the complexities of property transactions.
