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

UK Property Fall-Throughs Rise Nearly 10% in Q1 2026

Property fall-throughs across the UK increased by 9.8% during the first quarter of 2026, according to analysis by the House Buyer Bureau. This rise resulted in an additional £20.9 million in costs to the housing market compared to the previous quarter.

The House Buyer Bureau reviewed the latest data from TwentyCi, focusing on the estimated volume of UK residential fall-throughs in Q1 2026 and the average cost of a failed transaction. Their calculations took into account inflation, estimated legal fee increases, and recent house price data.

The analysis found that an estimated 67,489 property transactions collapsed during the first quarter of 2026, representing a 9.8% increase on the previous quarter. Despite this quarterly rise, the number of fall-throughs remains 12.1% lower than in Q1 2025.

As a result of the increased number of failed transactions, the estimated total cost of fall-throughs to the UK housing market rose from £218.3 million in Q4 2025 to £239.2 million in Q1 2026. This marks an increase of almost £21 million over three months.

While the frequency of fall-throughs grew, the estimated average cost incurred by sellers saw a marginal reduction. The House Buyer Bureau reported that the average cost of a fall-through was £3,544 in Q1 2026, down by 0.2% compared to the previous quarter, but still 2.1% higher than the same period last year.

These figures indicate that although individual sellers faced a slightly lower average cost per failed transaction, the overall financial impact on the market increased due to the higher number of fall-throughs. This trend is relevant for UK letting agents and inventory clerks, as it highlights ongoing volatility in the property transaction process and the potential for increased administrative workload and uncertainty.