Homebuyers are deterred from moving again and using the same estate agent due to the stress and increasing length of time associated with property transactions, research claims.
A new Home Movers Report from conveyancing platform Smoove found nine in 10 homebuyers described the process of moving home stressful, with respondents citing the length of time it took to complete, the lack of certainty and waiting for exchange and completion dates as some of the main reasons.
Within the past six months, the average time to complete was 153 days, the equivalent of more than five months, according to the report, compared with 124 days pre-pandemic.
Following the experience, 55% of homeowners said they would be unlikely to move again within the next five years, with the over-55 age group most likely to stay put.
Smoove warns in its report that this could leave people in homes that may be unsuitable in later life.
When asked what they would do differently next time moving home, more than two-fifths (45%) would save more money and almost a fifth (19%) would choose a different soliciting firm or estate agent (19%).
The analysis found that one in three purchases have fallen through over the past 12 months, while new instructions are up by 36%.
Buyers are also paying more to move, with legal fees up by 11% or £140, from £1,273 to £1,413 on average, according to the report.
Homebuyer surveys cost £525 on average, up from £465 the previous year, Smoove said.
Potential homeowners are therefore paying almost £2,000 in associated costs – money which could be wasted if the transaction then falls through, the report warns.
Jesper With-Fogstrup, chief executive of Smoove, said: “Home moving can often be an agonising, horribly stressful experience. The fact that few would argue with this speaks to a failed system.
“One in three home buying transactions should not be falling through. This figure represents tens of thousands of broken dreams and huge sums of money essentially poured down the drain. Creating more certainty around property transactions is essential. It will probably require legislative reform to provide greater protection to buyers and sellers once offers have been accepted.
“However, in the meantime, there are many things the industry could do to reduce stress levels and the proportion of transactions falling through. As we’ve seen, the sheer length of time is a major driver of stress and uncertainty.
“The entire process requires significant digitisation and automation, expediting paperwork and alleviating pain points. People should be able to engage with the transaction process entirely online or via an app, providing digital IDs, signatures and form filling and see its progression in real time. This could really help modernise the industry and transform the home moving experience.”
Pandemic property boom pushes up selling costs by £1000
The pandemic-influenced property market boom has caused the average house price in England to grow by 22%, which in turn has fed through to higher agent fees
A property purchasing specialist has revealed how the UK’s home sellers are now paying £793 more in estate agent commission when selling their home, thanks to the pandemic house price boom.
To come to this conclusion, House Buyer Bureau examined the average fee paid by home sellers across each region of England and how much this cost to sell has increased in comparison to the pre-pandemic market.
The research found that at the end of December 2019, just prior to the outbreak of Covid-19, the average estate agent was taking home £3,771 in commission. Today, by contrast, the average home seller is now paying £4,564 in estate agent fees, a rise of £793 despite a marginally lower fee of 1.51% now versus 1.52% in December 2019.
The pandemic-influenced property market boom has caused the average house price in England to grow by 22%, which in turn has fed through to higher agent fees.
Even with the London market struggling when compared to the rest of the UK, the capital still ranks top where the highest cost of selling a home is concerned. The average fee of 1.74% equates to £9,130 based on current market values, having increased by £835 when compared to the pre-pandemic market.
However, London home sellers have only seen the fourth largest increase in the cost to sell a home.
In the South East, this cost has increased by almost a thousand pounds since the start of the pandemic (+£996), with the South West of England (+£960) and East of England (+£906) also seeing some of the largest increases.
Home sellers in the North East have seen the smallest increase, with the average cost of selling up by £440.
There are a whole host of costs involved in selling a home, above and beyond the fee paid to your selling agent. However, these tend to be fixed and remain largely unchanged regardless of wider market performance, Chris Hodgkinson, managing director of House Buyer Bureau, commented.
He said: The fee charged by a selling agent, on the other hand, changes depending on the value of the home being sold. So while homeowners have enjoyed some pretty high and sustained rates of house price growth during the pandemic, the same increase in the value of their home will cost them a fair bit more if they do decide to sell up.