Volume up 10% but individual average cost reduces
The number of property fall-throughs across the UK increased by 9.8% during the first quarter of 2026, resulting in an additional £20.9m in costs to the housing market compared to the previous quarter, according to the latest Fall-Through Index by the House Buyer Bureau.
Around 67,489 property transactions collapsed during the first quarter of the year, up 9.8% on the previous quarter; however volumes remain 12.1% lower than Q1 2025.
As a result of the quarterly increase, the estimated total cost of fall-throughs to the UK housing market rose from £218.3m in Q4 2025 to £239.2m in Q1 2026.
The total cost
The company analysed the latest data from TwentyCi on the estimated volume of UK residential fall-throughs in Q1 2026 and used the average cost of a failed transaction (calculated in line with inflation), estimated legal fee increases, and adjusted based on the latest house price data, to estimate the total cost.
It showed that the estimated average cost incurred by sellers saw a marginal quarterly reduction, however, at an estimated £3,544 in Q1 2026, down by 0.2% versus the previous quarter. However, that figure is 2.1% higher than the same period last year.
Chris Hodgkinson, managing director of House Buyer Bureau, said: “After a significant reduction in fall-through activity at the end of last year, it’s disappointing to see the number of collapsed transactions move back in the wrong direction during the opening months of 2026.
“Whilst the average financial hit associated with a failed sale has remained broadly stable, it’s the increase in the number of transactions falling apart that is the real concern. Every fall-through represents wasted time, uncertainty, and additional expense for those involved, particularly sellers who often find themselves having to restart the process from scratch.”
“As a result, certainty continues to be a key priority for many homeowners. For a growing number of sellers, reducing the risk of a sale collapsing is becoming just as important as achieving the highest possible price.”
