Over £900m Lost to Property Fall-Throughs: What London Landlords Must Do Now

Understanding the Scale and Impact of Property Fall-Throughs

According to recent research by Rightmove, over £900 million of economic opportunity is lost annually in the UK due to property transactions falling through. This figure mainly represents lost estate agency commissions and stamp duty receipts but also signals wider operational and financial disruption for landlords and other stakeholders.

Approximately 6% of transactions fail outright without the property being re-listed within 12 months, while a further 23% initially fail but eventually complete after delays. These fall-throughs cause duplicated costs, uncertainty, and delays that ripple through the market.

For London landlords, where market dynamics are fast-paced and competition for tenants is intense, these disruptions can mean extended void periods, lost rental income, and increased operational headaches.

Why Are Transactions Falling Through?

Key drivers identified by Rightmove and industry bodies like NAEA Propertymark include:

• Incomplete or inaccurate upfront property information leading to buyer or tenant withdrawal
• Poor communication between parties causing misunderstandings and delays
• Lack of digitisation in the transaction process, resulting in inefficiencies and slower progress

Landlords, whether managing a single property or a portfolio including HMOs, must recognise how these factors can directly affect their rental income streams and tenant acquisition timelines.

Practical Implications for London Landlords

1. Financial Impact: Fall-throughs extend void periods and increase administrative costs. For portfolio landlords, these delays compound, affecting cash flow and profitability.

2. Operational Challenges: Re-listing and re-marketing properties require additional time and resources. For accidental landlords unfamiliar with market nuances, this can be particularly disruptive.

3. Tenant Relations: Tenants caught in fall-through transactions face uncertainty, which can damage landlord-tenant relationships and increase turnover risk.

4. Compliance and Transparency: Increasing regulatory focus on accurate property information means landlords must be proactive in disclosure and documentation.

What Landlords Can Do Now

Collaborate Closely with Estate and Letting Agents

Ensure that all property details, including compliance certificates, energy performance data, and accurate descriptions, are fully verified and shared upfront. This reduces the risk of surprises that can derail transactions.

Adopt and Advocate for Digital Tools

Engage with platforms and software that enhance transparency and communication — for example, digital document sharing, transaction tracking apps, and automated updates for all parties involved.

Prepare for Regulatory Changes

Government consultations signal an impending push towards digitisation and process reforms. Landlords should stay alert to these changes and be ready to adapt workflows accordingly.

Support Tenants and Buyers Through the Process

Providing clear, consistent communication helps reduce misunderstandings. If tenants are buying or moving, landlords can facilitate introductions to reliable agents or solicitors to smooth the process.

Benchmark Locally

While national data indicates a 6% outright fall-through rate, local market conditions in London may differ. Landlords should track their own transaction success rates and liaise with local agents to understand nuanced risks.

Tailoring Strategies by Landlord Profile

• Single-Unit Landlords: Focus on thorough property vetting and clear communication channels with agents to avoid costly voids.

• Portfolio Landlords: Implement standardised digital workflows and regular data audits to maintain consistency across multiple properties.

• HMO Landlords: Given the complexity of multiple tenants, prioritise upfront information accuracy and tenant screening to minimise transaction failure risks.

• Accidental Landlords: Seek professional advice to understand market norms and compliance requirements, reducing fall-through exposure.

Next Steps for Time-Poor London Landlords

1. Schedule a meeting with your chosen estate or letting agents to review the completeness of property information currently provided.
2. Investigate digital tools your agents or you can adopt to improve transaction transparency and communication.
3. Set up a simple tracking system to monitor fall-through occurrences and identify patterns.
4. Prepare for upcoming regulatory changes by subscribing to reliable industry updates or consulting with property compliance specialists.

How Rentals & Sales Can Support You

Our landlord intelligence hub offers tailored portfolio reviews, compliance audits, and pricing strategy consultations designed to minimise fall-through risks and maximise rental income. We help landlords implement best practices in collaboration with agents and adopt digital solutions fit for today’s market.

Disclaimer: This article provides general information and does not constitute legal or financial advice. Landlords should consult relevant professionals for advice tailored to their specific circumstances.