A third of property transactions in England and Wales fail because buyers or sellers change their minds, according to research from property services group LRG, significantly outpacing failures caused by surveys or mortgage issues.
The Winter Sales Report, titled The Homebuyer Reboot, surveyed 221 buyers and sellers and found that 34% of failed transactions were attributed to cold feet. This compares to 9% caused by mortgage issues and just 3% due to survey problems.
Support for binding offers
The research indicates 80% of respondents support the introduction of legally binding offers, a measure proposed in the Government’s recent Home Buying and Selling Reform consultation. Such a system already operates in Scotland.
Neil Louth, Chief Executive Officer for The Acorn Group, part of LRG, said: “When a third of transactions collapse because someone changed their mind, it’s clear the system isn’t working as it should. But the good news is that this is fixable.”
According to the TwentyCi Property & Homemover Q3 2025 report, more than 82,000 sales collapsed in the third quarter of 2025 alone.
Proposed reforms
LRG suggests binding offers would commit both parties earlier in the process, reducing the period during which transactions can collapse. The group also advocates for upfront property condition reports to provide buyers with earlier clarity on property conditions.
“If buyers know what they’re getting into early on, they’re far less likely to walk away later,” Louth said. “It’s about removing those unknowns that cause hesitation.”
The findings emerge as the Government consults on reforms to the home buying and selling process in England and Wales, with transaction failure rates remaining a persistent issue in the property market.