For the real estate market, 2023 was a challenging year. Failed transactions continue to be a prominent obstacle for both buyers and sellers. However, the good news is that due to a slowdown in market conditions and a decrease in transaction volume, the number of failed transactions has declined. Compared to the previous year, the number and associated costs of failed transactions in 2023 have slightly decreased.

Nevertheless, throughout 2023, the number of transactions falling through has steadily increased, displaying an upward trend. In the third quarter of last year, the number of failed transactions increased by 13.3%, following a 9.3% increase between the first and second quarters. This indicates that while there are signs of recovery in the real estate market, issues with failed transactions persist.

According to Home Sale Pack's estimates, the average cost of failed transactions rose to £3,433 in the third quarter of last year, an increase of £51 from the previous quarter and £84 from the beginning of the year. Therefore, the estimated total cost of failed transactions for UK buyers and sellers in the third quarter of last year approached £270 million, a 15% increase from the second quarter.

Compared to the same period in 2022, transaction volumes in the third quarter of 2023 decreased by 12.8%, and total market costs also decreased by 9.8% year-on-year. This implies that, despite a decrease in the number of failed transactions, the real estate market as a whole continues to face certain challenges.

These data illustrate that failed property transactions are a significant burden for both buyers and sellers, impacting the entire real estate market. Buyers and sellers need to confront the risks associated with failed transactions and take appropriate measures to mitigate this risk. The government and relevant authorities should closely monitor the dynamics of the real estate market and provide support and guidance to promote a more stable and reliable transaction environment.

Looking ahead, as market conditions evolve, issues with failed transactions may persist. Buyers and sellers should carefully choose suitable transaction partners and seek professional advice and support during the transaction process. Accurately assessing market conditions and understanding relevant regulations can help them make informed decisions and reduce the risk of failed transactions.