Collapsed house moves cost economy £2bn per year: OPDA

Over half of house moves collapse after an offer has already been accepted, costing the economy a potential £2billion a year in wasted time and fees, according to new research from the Open Property Data Association (OPDA). 

58% of property transactions fall through after the offer stage. With around 1.2 million residential transactions taking place each year, and the average fall‑through costing buyers and sellers an estimated £2,830 in direct costs - such as legal fees, surveys, mortgage costs - and lost time and productivity, the total annual cost to the UK economy could be as high as £1.97billion.

The findings come at a time when the housing market is already under strain. Higher interest rates, tighter affordability, and longer transaction times have increased the risk of deals collapsing before completion, leaving families financially stretched and emotionally drained.

The OPDA study, based on a survey of 5,000 recent home movers, found the average length of time wasted on each failed transaction is around three months. One in six transactions collapses after four months, and one in ten falls through after five months or more.

When asked how they were affected by a collapsed sale or purchase, 43% cited emotional stress as the biggest impact, and 41% said their plans were significantly delayed.

The impact was felt most acutely by older home movers. Among those aged 55 and over, almost six in ten (59%) reported high levels of emotional stress.

Maria Harris, chair of the OPDA, said: "These figures lay bare a housing market that is failing consumers at every stage. Far too many transactions collapse because crucial information only comes to light weeks or even months after an offer is made. By then, buyers and sellers have already invested significant time, money and emotional energy.

"Providing upfront, standardised property data through digital property packs would transform this process. When material information is available at the point of listing, buyers can make informed decisions, issues can be identified early, and far fewer transactions fall apart late in the process.

"Upfront property data isn’t about adding bureaucracy, it’s about bringing transparency, certainty and trust back into the housing market. By embracing digital property packs, we can reduce fall‑throughs, shorten transaction times and create a fairer, more resilient system that works for everyone."

Phil Spencer, property expert and founder of property advice website Move iQ, commented: "The collapse of a house move can be devastating for everyone involved, creating further anxiety in an already stressful process. For buyers and sellers, these fall‑throughs often mean months of uncertainty, money lost on fees that can’t be recovered, and plans put on hold. Much of that pain could be avoided if people were given clear, reliable property information upfront.

"When buyers know what they’re committing to from the start, they can proceed with confidence, avoid nasty surprises later on, and reduce the risk of deals collapsing after so much has already been invested."