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Financial services company Santander has released a report into failed conveyancing transactions, finding that a ‘conservative calculation’ of £1.5 billion is spent each year on purchases and sales that fail to complete.

The research was carried out in partnership with consultants WPI Economics and JL Partners, and claims that 530,000 transactions fall through every year.

A survey of 2,363 consumers found that nearly a quarter (23%) of those who tried to buy a property said their sales had fallen through.

Those questioned reported an increase in anxiety (57%), that their sleep was affected (26%), and personal relationships became strained (26%).

The report noted that “For instance, 52% of recent buyers reported negative mental health impacts as a result of a housing transaction failure, with issues including anxiety and insomnia. For one in three people, these negative feelings were reported to lead to a fall in workplace productivity – with over 90,000 individuals affected each year.”

The report found that the average cost when a conveyancing transaction falls through is £1,240.

Even when a transaction is successful, 38% of those questioned said the conveyancing and legal process was hard, with 55% saying it took too long and 23% saying that the documents were too complicated. Some 23% found their solicitor to be hard to contact.

The report notes that there is “pressure on the system as it currently operates, with stakeholders from conveyancers to surveyors already operating at maximum capacity, which has been exacerbated by a reduction in the number of conveyancers and firms.

“In fact, there has been a 15% fall in the number of conveyancers in England and Wales between September 2021 and January 2025 according to the Law Society. Even at the end of the process, when you might expect the stress to ease and the excitement of a new home to kick in, people still found it really difficult: 38% of respondents said that exchanging and moving was hard.”

Head of homes at Santander UK, David Morris, said the report found that home buying “is often marred by delays and complications resulting in an acutely stressful and off-putting experience for consumers.”

The cost of transactions falling through is expected to be £560 million every year in total. He claims that people find it to be “an experience that some choose to never repeat again.” This means that thousands of properties do not come onto the market because of the off-putting nature of the conveyancing process.

Over a quarter (28%) of those questioned said they would be less likely to move again because of their negative experience. Some 24% said that the complex procedure made them contemplate giving up buying a property altogether, with 54% saying they were constantly stressed throughout the transaction.

Why do conveyancing transactions fall through?

Some of the most common reasons for a conveyancing transaction to fail are:

• The chain collapses because someone is unable to proceed
• A survey reveals problems with the property and the buyer decides not to go ahead
• There are legal complications that mean the property might be harder to sell in the future or the mortgage lender is not prepared to lend against it
• A borrower is unable to obtain a mortgage
• Gazumping occurs, where another buyer offers a higher price and the seller does not proceed with the original buyer
• Gazundering occurs, where the buyer drops the price they are prepared to pay at the last minute, and the seller decides not to proceed with them
• A buyer changes their mind, for example, a preferred property might become available
• Personal circumstances might change, for example, employment may be offered elsewhere
• Delays in the chain could cause one or more parties to pull out in frustration

How to reduce the risk of your conveyancing transaction falling through

You should check how much you can borrow before making an offer on the property and obtain a mortgage offer in principle, which will give you a good idea of the amount that your chosen lender is prepared to offer.

Using an experienced conveyancer means that should legal issues arise, there is a good chance they can be resolved.

Choosing a conveyancer with a good reputation who will work proactively to move your transaction forward is essential.

Speak to a solicitor early on to start the ball rolling. By filling in forms now, they will be able to start work as soon as the chain is in place.

For further advice or information please contact one of our Residential Property experts.

This article is for general information only and does not constitute legal or professional advice. Please note that the law may have changed since this article was published.