Property fall-through costs increase by £21m in Q1

The number of property fall-throughs increased by 9.8% during Q1 2026, resulting in an additional £20.9m in costs to the housing market quarter-on-quarter, the House Buyer Bureau has revealed.

The bureau’s latest Fall-Through Index, which analyses data from TwentyCi, found that an estimated 67,489 property transactions collapsed during Q1, marking an almost 10% quarterly increase.

Despite this, fall-through volumes were 12.1% lower than in Q1 2025.

As a result of the increase, the estimated costs of fall-throughs to the UK housing market climbed from £218.3m in Q4 2025 to £239.2m in Q1 2026.

The Home Buyer Bureau said that while the frequency of fall-throughs increased, the estimated average cost incurred by sellers saw a marginal quarterly reduction.

The data shows that the average cost of a fall-through stood at an estimated £3,544 in Q1, marking a 0.2% reduction quarter-on-quarter, although this figure has increased by 2.1% in the last 12 months.

The bureau said the latest figures suggest that while sellers faced a slightly lower individual cost when a transaction collapsed, the higher number of fall-through has once again increased the overall financial burden placed on the housing market.

Managing director at House Buyer Bureau, Chris Hodgkinson, said that it is "disappointing to see the number of collapsed transactions move back in the wrong direction" in the opening months of 2026.

He concluded: "Whilst the average financial hit associated with a failed sale has remained broadly stable, it's the increase in the number of transactions falling apart that is the real concern. Every fall-through represents wasted time, uncertainty, and additional expense for those involved, particularly sellers who often find themselves having to restart the process from scratch.

"The challenge is that many of the factors driving fall-throughs remain difficult to control. Affordability pressures, changing buyer circumstances, and wider economic uncertainty can all derail a transaction at the last minute.

"As a result, certainty continues to be a key priority for many homeowners. For a growing number of sellers, reducing the risk of a sale collapsing is becoming just as important as achieving the highest possible price."



Share Story:

Recent Stories


FREE E-NEWS SIGN UP

Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.


Mortgage Advice Bureau and AI in the mortgage sector
Chief executive officer at Mortgage Advice Bureau, Peter Brodnicki, and founder and managing director at Heron Financial, Matt Coulson, joined content editor Dan McGrath to discuss how Mortgage Advice Bureau is using artificial intelligence to make advancements in the mortgage industry, the limitations of this technology and what 2026 will hold for the market

Perenna and the long-term fixed mortgage market
Content editor, Dan McGrath, spoke to head of product, proposition and distribution at Perenna, John Davison, to explore the long-term fixed mortgage market, the role that Perenna plays in this sector and the impact of the recent Autumn Budget

NEW BUILD IN FOCUS - NEW EPISODE OF THE MORTGAGE INSIDER PODCAST, OUT NOW
Figures from the National House-Building Council saw Q1 2025 register a 36% increase in new homes built across the UK compared with the same period last year, representing a striking development for the first-time buyer market. But with the higher cost of building, ongoing planning challenges and new and changing regulations, how sustainable is this growth? And what does it mean for brokers?

Does the North-South divide still exist in the UK housing market?
What do the most expensive parts of the country reveal about shifting demand? And why is the Manchester housing market now outperforming many southern counterparts?



In this episode of the Barclays Mortgage Insider Podcast, host Phil Spencer is joined by Lucian Cook, Head of Research at Savills, and Ross Jones, founder of Home Financial and Evolve Commercial Finance, to explore how regional trends are redefining the UK housing, mortgage and buy-to-let markets.

Advertisement