Navigating the Rising Tide of Failed Property Sales: What London Landlords Must Do Now

Why Are So Many Property Sales Failing? What It Means for Landlords

A recent Rightmove analysis uncovered that almost 25% of UK property transactions fail at the initial stage, with 6% not relisting within a year. In England alone, this translates to an estimated loss of £392 million in estate agent fees. The causes are varied: incomplete or missing property information, chain breakages, financing issues, or legal complications. For private landlords—whether selling a single property, an HMO, or part of a portfolio—these failures mean longer market times, increased holding costs, and potentially reduced sale prices.

Practical Implications Across Your Operations

Financial Impact: Failed sales extend your exposure to mortgage payments, maintenance, and council tax without rental income if tenants vacate for sale. They can also delay reinvestment plans or portfolio reshaping strategies.

Compliance & Due Diligence: Buyers are increasingly demanding comprehensive upfront information. Incomplete documentation or delays in providing EPCs, gas safety certificates, or tenancy agreements can stall or kill sales.

Tenant Relations: If tenants are involved, failed sales can create uncertainty or disputes over access and notice periods.

Strategic Planning: Understanding the risks of fall-throughs should inform pricing strategies, marketing timelines, and agent selection.

Tailoring Your Approach to Different Landlord Profiles

• Single-Unit Landlords: Focus on clear, accessible property information and proactive communication with potential buyers to reduce uncertainty.
• HMO Operators: Ensure all licences and safety certificates are up to date and easily shareable to reassure buyers.
• Portfolio Landlords: Consider staggered sales to reduce chain complications; leverage digital platforms for document management.
• Accidental Landlords: Engage professional advisors early to anticipate and resolve issues that commonly cause delays.

Concrete Next Steps for Landlords

1. Audit Your Property Documentation: Assemble and verify all compliance certificates, tenancy agreements, and legally required disclosures. Digitalise these documents for quick sharing.
2. Review Communication Protocols: Establish clear, timely information flows between you, your letting agent, solicitors, and surveyors. Schedule regular progress check-ins.
3. Explore Digital Tools: Platforms that integrate property data, track transaction progress, and facilitate buyer communication can reduce fall-through risks.
4. Educate Stakeholders: Brief tenants, agents, and buyers on potential transaction pitfalls and set realistic expectations.
5. Engage Professionals Proactively: Early involvement of solicitors and surveyors can identify and mitigate issues before they derail sales.

Benchmarking and Local Considerations

While the national figures are stark, London markets may experience higher or lower fall-through rates depending on area and property type. Track your local market data through agents or industry reports to benchmark your performance and tailor interventions accordingly.

How Rentals & Sales Can Support You

Our dedicated landlord intelligence hub offers portfolio reviews, compliance audits, and tailored pricing strategies designed to minimise transaction risks and maximise sale success. We also provide training on digital tools and workflows proven to reduce fall-throughs.

Compliance Disclaimer

This article provides general guidance and does not constitute legal or financial advice. Landlords should consult qualified professionals for advice tailored to their specific circumstances.