Housing market hit by £21m increase in fall-through bill
The latest Fall-Through Index by the House Buyer Bureau reveals that the number of property fall-throughs across the UK increased by 9.8% during the first quarter of 2026, resulting in an additional £20.9m in costs to the housing market compared to the previous quarter.
House Buyer Bureau analysed the latest data from TwentyCi on the estimated volume of UK residential fall-throughs in Q1 2026, along with the average cost of a failed transaction, which was calculated in line with inflation, estimated legal fee increases, and adjusted based on the latest house price data, before estimating the total cost of these fall-throughs to the market.
The analysis shows that an estimated 67,489 property transactions collapsed during the first quarter of the year, up 9.8% on the previous quarter. Despite this quarterly increase, fall-through volumes remain -12.1% lower than during Q1 2025.
As a result of the quarterly increase in the number of failed transactions, the estimated total cost of fall-throughs to the UK housing market climbed from £218.3m in Q4 2025 to £239.2m in Q1 2026, an increase of almost £21m in just three months.
While the frequency of fall-throughs increased, the estimated average cost incurred by sellers saw a marginal quarterly reduction. House Buyer Bureau’s analysis shows that the average cost of a fall-through stood at an estimated £3,544 in Q1 2026, down by -0.2% versus the previous quarter. However, it remains 2.1% higher than the average cost recorded during the same period last year.
The latest figures suggest that while sellers faced a slightly lower individual cost when a transaction collapsed, the higher number of fall-throughs seen during the quarter has once again increased the overall financial burden placed on the housing market.
Chris Hodgkinson, Managing Director of House Buyer Bureau, commented:
“After a significant reduction in fall-through activity at the end of last year, it’s disappointing to see the number of collapsed transactions move back in the wrong direction during the opening months of 2026.
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.”
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