Failed housing transactions cost £1.5 billion a year

Failed housing transactions cost consumers and the economy at least £1.5 billion every year, according to research published by Santander.

The research says that over 530,000 transactions fall through every year due to the UK's antiquated homebuying process.

The economic analysis shows that the direct cost to consumers of this through expenditure on elements such as mortgage and solicitors' fees that consumers cannot recoup, is £560 million annually.

However, the impact is not just limited to consumers. The repercussions on the broader economy include the loss of work output due to stress and the time taken to buy a property within work hours, estimated at £380 million per year.

There is also the cost of people's reduced wellbeing, estimated to be £400 million and wasted leisure time, approximately £170 million.

David Morris, Head of Homes at Santander UK, said:

'The homebuying journey is still operating in the confines of a framework that was established a century ago. This antiquated system is an increasingly heavy anchor weighing on the economy and fixing it must be key.

'While the government has put the housing market firmly on its agenda – as this research shows - the scale of the challenge remains largely underappreciated, and that's why we're calling for powerful reforms to give buyers and sellers more confidence, ease the financial and emotional strain and create a housing system fit for the needs of today's consumers and economy.'