Housing market hit by £18m increase in fall-through costs in Q2 2026
The latest Fall-Through Index by the House Buyer Bureau reveals that the number of property fall-throughs across the UK increased by 6.6% during the second quarter of 2026, resulting in an additional £18.3m 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 Q2 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 71,959 property transactions collapsed during the second quarter of the year, up 6.6% on the previous quarter. Despite this quarterly increase, fall-through volumes remain -8.7% lower than during Q2 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 £239.7m in Q1 2026 to £257.9m in Q2 2026, an increase of more than £18m.
While the frequency of fall-throughs increased, the estimated average cost incurred by sellers also edged higher. House Buyer Bureau’s analysis shows that the average cost of a fall-through stood at an estimated £3,584 in Q2 2026, up by 0.9% versus the previous quarter. It also remains 2.8% higher than the average cost recorded during the same period last year.
The latest figures suggest that while the number of failed transactions remains below the levels seen a year ago, the financial impact of each individual fall-through continues to rise. Combined with the quarterly increase in failed transactions, this has once again increased the overall financial burden placed on the housing market.
Chris Hodgkinson, Managing Director of House Buyer Bureau, commented:
“It’s disappointing to see the number of collapsed transactions increase again during the second quarter of 2026, resulting in financial losses and stress for tens or thousands of homebuyers and sellers.
Whilst fall-through volumes remain notably lower than they were this time last year, the latest increase highlights just how fragile the process of buying and selling a home can remain. The fact that the average cost of a failed sale has also continued to rise means that every collapse carries a significant financial consequence for those involved.
For sellers in particular, a fall-through can mean wasted time, additional costs and the uncertainty of having to put their property back on the market, often after they have already made plans based on their sale completing.
The good news is that the number of fall-throughs remains below last year’s levels, but the latest figures demonstrate that there is still considerable scope to improve certainty within the transaction process. With affordability pressures, changing buyer circumstances, and wider economic uncertainty continuing to influence the market, reducing the risk of a sale collapsing should remain a priority for both homeowners and the industry as a whole.”
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