Government Reforms Could Cut Property Fall-Throughs to One in 20

Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.

Government Reforms Could Cut Property Fall-Throughs to One in 20

New analysis suggests the Government's reforms to the homebuying system could reduce property deal fall-throughs to one in 20. A study of 500 transactions by lawtech firm Conveyo found that fewer than 5% would collapse in practice once the changes are implemented.

What the Reforms Involve

The Government announced a major overhaul of the homebuying system in June, designed to speed up transactions and prevent fall-throughs. It said the changes would cut buying times by four weeks and save first-time buyers an average of £650. New sales packs, earlier binding agreements and digital tools would halve the number of sales that fall through, it claimed.

Evidence from the Study

Conveyo's research found very few sales fell through, with freeholds reaching exchange in around 30 days and leaseholds in around 45. This contrasts sharply with figures released in May by the Open Property Data Association (OPDA), which showed fall-throughs hitting 58% of property deals after an offer was accepted.

Pressure on the Current System

Conveyo says pressure on the current system is growing. More than 2,000 conveyancing solicitors have left the sector since 2022, while the time from listing to completion has reached 211 days.

Industry Perspective

Chris Grant, LawtechUK panel member and MD Client Value at solicitors Goodwin, said earlier, better structured information can help identify problems before they hold up a transaction, while automation can remove repetitive work and allow lawyers to concentrate on decisions requiring professional judgement. He added that there is an opportunity to look at evidence from successful British lawtech companies to understand what works, where the risks are and what needs to change if successful approaches are to operate at greater scale.

What This Means for Agents

For letting agents and inventory clerks, the findings point to the potential impact of earlier binding agreements, sales packs and digital tools on transaction reliability. With fall-through rates currently high according to OPDA data, and completion times stretching to 211 days, any reduction in collapsed deals could affect how quickly properties move through the sales and letting pipeline.