With nearly a third of residential property deals falling through before completion in 2024, many property professionals were left wondering what exactly went wrong — and more importantly, how to prevent it from happening again in 2025.
Whether you’re a property investor, sourcing agent, or deal packager, understanding the key reasons for these failed transactions is essential to maintaining trust with clients and avoiding unnecessary setbacks.
The Numbers Behind the Failures
According to data from Quick Move Now, 28.8% of all residential property transactions failed to make it to completion in 2024. This statistic, reported by Property Industry Eye and Letting Agent Today, sheds light on how external market conditions and internal process issues continue to disrupt the property market.
Here’s a breakdown of the top reasons why deals fell through last year:
- Buyer pulled out or attempted to renegotiate after survey: 27.3%
- Buyer changed their mind: 23.6%
- Buyer struggled to secure a mortgage: 21.8%
- Seller accepted a higher offer: 14.5%
- Chain-break: 7.3%
- Seller pulled out due to slow progress: 5.5%
Why These Failures Happened
There were several underlying market conditions contributing to the instability last year:
- Mortgage Interest Rates: Although rates slightly decreased by the year’s end, they didn’t drop far enough to meet buyer expectations. As a result, securing financing remained a significant hurdle for many buyers.
- Economic Uncertainty: Fluctuating inflation and political challenges contributed to buyer hesitancy, as many grew cautious about significant financial commitments.
- Survey Results and Price Negotiations: Issues uncovered during surveys led some buyers to withdraw entirely or attempt renegotiation—a gamble that often resulted in failed deals.
- Slow Progress in Conveyancing: Seller frustration with prolonged legal processes meant some deals simply fell apart after months of waiting.
What This Means for Property Professionals
The stakes are high for anyone involved in property deals. When a transaction falls through, not only is time and effort wasted, but the reputations of those involved may also suffer. For sourcing agents and deal packagers, this can threaten relationships with investors and clients.
How Sourcing Agents Can Reduce the Risk of Failed Deals
While no one can control fluctuations in interest rates or unexpected survey results, there are proactive measures that sourcing agents, deal packagers and investors can take to reduce the chances of a deal collapsing.
1. Be Transparent from the Start
Open communication builds trust and reduces the risk of misunderstandings. Clearly outline every aspect of the deal to your investor, including potential risks, challenges and all material information. Transparency ensures everyone is on the same page and avoids surprises further down the line.
2. Facilitate Open Communication Across Stakeholders
Keep communication channels open between your investor and your seller, plus their respective solicitors at all times. Regular updates and check-ins help maintain momentum and prevent unnecessary delays.
3. Verify Finances Early in the Process
One of the most common issues leading to failed deals is a buyer’s inability to secure a mortgage. By ensuring that your investor or buyer has attainable and appropriate financing in place early on, you can greatly reduce the risk of the deal falling through.
4. Set Realistic Timelines and Expectations
Don’t overpromise or underestimate how long legal and conveyancing processes can take. Having a realistic timeline for completion helps manage expectations and prevents frustration on both sides of the transaction.
5. Work With Reliable Conveyancers
The role of conveyancers in completing property transactions cannot be overstated. Choose experienced and reliable professionals to handle the legal aspects of your deals. Poorly trained or inexperienced case handlers can lead to delays—and failed sales.
Turning Challenges into Opportunities in 2025
2024’s figures may seem discouraging, but with the right approach, property professionals can use these insights to forge stronger, more efficient processes in 2025 and beyond.
By identifying and addressing the common reasons for fall-throughs, you can build trust with investors, streamline communication, and ultimately achieve better outcomes.
At the heart of this is one thing: preparation. Be proactive in addressing potential pitfalls early in the transaction process, and ensure your clients feel supported and informed at every step.
