How Falling Property Transactions Cost Landlords Over £900m a Year—and What You Can Do About It

The Hidden Cost of Property Transaction Failures

A recent report highlighted that over £900 million is lost each year in estate agency commissions and stamp duty due to property transactions falling through — with around 6% of sales failing to complete within 12 months. England shoulders the largest share of this loss, reflecting the concentration of market activity here.

For landlords, especially those active in London’s fast-moving residential market, these transaction failures are more than just a statistic. They translate into delayed acquisitions, postponed lettings, increased holding costs, and uncertainty in planning portfolio growth.

Why Do Transactions Fall Through?

The traditional property buying and selling process remains fragmented and inefficient. Common causes include:

• Financing issues or mortgage rejections
• Delays in surveys and legal checks
• Chain collapses where one transaction failure cascades
• Poor communication between parties

Rightmove emphasises that lack of digitisation and alignment among stakeholders exacerbate these issues.

Practical Implications for Different Landlord Types

• Single-unit landlords may face longer void periods if their purchase falls through, impacting rental income and cash flow.

• HMO owners negotiating multiple transactions can see compounding delays, affecting refurbishment and tenant onboarding schedules.

• Portfolio landlords risk strategic disruption, with planned acquisitions or disposals stalling and increasing financing costs.

• Accidental landlords might encounter unexpected complexities if relying on traditional estate agents with limited digital integration.

Steps to Mitigate Risks and Improve Outcomes

1. Audit Your Transaction Processes: Review recent property deals to identify where delays or failures occurred. Note if financing, legal, or communication stages caused bottlenecks.

2. Leverage Digital Platforms: Explore property transaction platforms that offer integrated mortgage pre-approval, digital document exchange, and real-time status tracking. These tools can reduce errors and speed up completion.

3. Proactive Client Communication: If you work with letting agents or property managers, ensure they inform tenants or buyers early about potential risks and costs associated with fall-throughs.

4. Stay Ahead of Regulatory Changes: The UK government is considering reforms to digitise and streamline home moving. Monitor updates to ensure your processes comply and benefit from any early-adopter schemes.

5. Collaborate with Industry Partners: Engage with solicitors, mortgage brokers, and agents who prioritise transparency and technology-driven solutions to minimise transaction failures.

Benchmarking Your Local Market

While national fall-through rates hover around 6%, local rates can vary. Check with your local estate agents or use tools like Rightmove Insights to understand your area’s specific risks. This knowledge can help tailor your risk management and pricing strategies.

Next Steps for London Landlords

• Schedule a portfolio review focused on acquisition and disposal risks.
• Arrange a compliance audit to verify your transaction workflows align with emerging digital standards.
• Consult with Rentals & Sales’ advisory team to develop a pricing and operational strategy that accounts for potential fall-through delays.

How Rentals & Sales Can Help

Our experienced team offers bespoke portfolio reviews, compliance audits, and strategic advice tailored to London’s rental market. We help landlords adopt technology-enabled processes that reduce transaction risks and optimise rental income.

Contact us today to safeguard your investments against costly fall-throughs.

Disclaimer: This article is for informational purposes and does not constitute legal or financial advice. Landlords should consult relevant professionals regarding their specific circumstances.