Demand for chain-free homes has skyrocketed as buyers continue to pay a significant premium for a fast, efficient purchase, research from HBB Solutions shows.
Previous analysis from the property purchasing specialist has revealed that a chain-free property sale takes 60% less time to complete than that of a property linked to a chain.
Now, its latest findings suggest that this increased efficiency has led to a 43% increase in sales value for chain-free homes in the UK.
UK chain-free property transactions combined to create a total value of £28.8 billion in the past year – some £8.7 billion (43%) higher than the previous year. This increase has been created by the sheer volume of chain-free transactions increasing by 29% in the past year.
Where are chain-free transactions most prevalent?
On a regional level, the UK’s chain-free hotspot is Northern Ireland where the value of the accumulated transactions is £196.5 million – 67% higher than the previous year. This increase has been driven by upward house price growth, as well as a 54% increase in chain-free transaction levels.
In Scotland, however, total transaction value has grown by 58% while the number of sales has risen by 42%.
In England's South East, the value increase is 55% and transaction count is up 37%; and in the East of England, value is up 49% while the number of sales has increased by 33%. Meanwhile, in the South West, transaction value has increased by 48% with total sales rising by 31%.
In Wales, total chain-free transaction value has increased by 44% as sales numbers rise by 27%, and in London, the total value is up 43% with sales rising by 35%.
In fact, the UK has seen both the value and quantity of transactions increase across the board with every region reporting substantial growth in both categories. So much so that even the North East, where growth has been the most modest, is reporting a 23% increase in transaction value and a 16% rise in sales.
Will demand for chain-free homes continue to rise?
Chris Hodgkinson, managing director of HBB Solutions, comments: “It’s clear that buyers are all too aware of how competitive today’s housing market is.”
“Such heightened market activity alongside stagnant supply is not only driving house price growth, but it’s overloading the market and we’ve seen the time it’s taking to sell increase considerably during the pandemic, with the level of sales falling through also on the up.”
Chain-free homes provide an opportunity for buyers to avoid the lengthy transaction timeline, and Hodgkinson believes buyers are currently grabbing the chance of a chain-free purchase with both hands.
“This high demand coupled with the promise of a smoother, quicker transaction means that chain-free homes command a significantly higher asking price,” he adds.
“As a result, we’ve seen both an increase in chain-free transactions, and a hike in the price paid for these properties, contribute to a significant increase in the total value of chain-free homes sold across the market.”