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Post-Brexit landscape leads to rise in house sale fall-throughs

Wednesday 19th October 2016

Figures released by Quick Move Now have shown that 31% of house sales fell through before completion in the third quarter of 2016.
 
Data was also released by Quick Move Now for the six-month average fall-through rate, which provides a more comprehensive review, allowing for seasonal peaks and troughs. Currently, the six-month average fall-through rate stands at 29.75%, a rise of 4.75% since the end of Q2 2016.
 
“As the first full quarter since the results of the EU referendum, the figures from the third quarter offer an important insight into how Brexit has affected the stability of UK property sales,” Danny Luke, Quick Move Now's Managing Director, said. 
 
“Brexit has caused a great deal of uncertainty in the UK property market, and this uncertainty can be seen in the fall through rate figures. A huge 44.44 percent of the sales that fell through did so because buyers changed their mind, which is reflective of the anxiety and lack of confidence that are currently present in the property market.”
 
He added: “It also supports the verbal assessment that we've had from estate agents throughout the country, that many house sales collapsed as a result of buyers nervously pulling out of sales in the immediate aftermath of the EU referendum result.”
 
Once the initial shock of the EU referendum result subsides, Luke expects to see a certain level of confidence returning to the property market over the next quarter. How long that confidence lasts, though, will largely depend on how the exit from the European Union is managed.
 
“With Theresa May recently announcing that Article 50 will be triggered by the end of March 2017, the market looks set to have a great deal more uncertainty to contend with over the coming year,” Luke concluded. 
              

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