THE UK housing shortage will lead to many homes selling within just DAYS of going on sale, a property expert has predicted.
Jonathan Rolande, from House Buy Fast, said he is aware of increasing cases of lightning fast transactions taking place.
He said: “It’s increasingly common for a seller to put a house on the market on a Monday, hold an open-house and have a deal wrapped up by Friday morning. The speed and pace of transactions right now is unbelievable but it’s a reflection of dwindling supply.”
Jonathan’s comments come days after new figures showed one in 10 homes are selling within a fortnight of going on sale.
And in some areas the average is near one in five as the pandemic property market boom shows little sign of cooling despite interest rate rises.
Estate agent comparison site GetAgent.co.uk said the UK’s shortage of housing means 11% of properties get snapped up within 14 days. It currently takes the average UK home seller 97 days to offload their home. Regionally, Scotland is the hottest market where 18% of homes are gone within 14 days. In the South West the figure is 13%, while in Wales, the West Midlands and East of England it is 12%. London is currently a harder sell with just 7% of homes bought in a fortnight.
Jonathan said the quick transactions are a double-edged sword.
He said: “Quickfire sales sound great on one hand, but on the other this may present an open door to fraudsters who could see it as a chance to try and capitalise on the speedy nature of the chain. Property fraud is already a massive and growing problem and those who fall victim to it often end up losing a lot of money. Estate agents and solicitors are on the frontline when it comes to detecting and preventing property fraud. However if they are overworked and too busy as they race to complete a deal really quickly then detectable signs of a problem could easily be missed.
“With solicitors harder to speak to and many now operating remotely, more and more work is done by email. It’s highly likely you won’t speak to your conveyancing solicitor let alone meet them. Fraudsters know this and therefore try to intercept email to divert money from property sales to their own bank account. Never pay anyone based on an email requesting cash. Always check using a trusted number or an in-person conversation with the recipient.”
“There is increased pressure on property surveyors right now too. Could this race to complete faster and faster mean they miss something? It’s possible. With property, the devil is in the detail. Deeds and leases are a tough read at the best of times but they often contain vital clues to possible problems. I wonder whether those agreeing to quick sales are also including buyers who are willing to turn a blind eye to structural and repair issues knowing that losing a property will probably mean paying even more for one similar down the line. It’s a high risk strategy. Where possible it is best to avoid unnecessary risk like this as you could be storing up problems down the line which end up being really expensive to fix.”
The advice comes after recently released figures laid bare the damage property fall throughs can do to the market.
According to estimates by HBB Solutions sale fall-throughs could cost the UK property market £787.7 million in 2022, despite signs of an early decline in the actual volume of transactions affected.
Jonathan said: “Fall throughs are bad for buyers, sellers and the estate agent. Whether you are the buyer, seller or the estate agent is incredibly disappointing, not to mention expensive. The average fall-through costs the buyer or seller over £1500 in wasted fees. Pity the agent too, they lose around £4000 for every sale that goes wrong. There are any number of reasons why things go wrong but the most common are simply a change of mind by the buyer or seller; a chain break; legal problems and structural issues. There could also be Illness or personal problems; a better property may come along or a deal could collapse due to mortgage problems.”
