Despite the quarterly rise, fall-through volumes remained 8.7% lower than in Q2 2025.
The increase pushed the total cost of failed transactions to an estimated £257.9m, up from £239.7m in Q1, generating an additional £18.3m in costs for the housing market.
While the number of fall-throughs rose, the average cost incurred by sellers also increased.
The average cost of a failed transaction reached £3,584 in Q2 2026, up 0.9% on the previous quarter and 2.8% higher than a year earlier.
The figures come from the latest Fall-Through Index by the House Buyer Bureau, which used TwentyCi data and factored in inflation, rising legal fees and the latest house price data to estimate the total cost of fall-throughs.
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Chris Hodgkinson, managing director of House Buyer Bureau, commented: “It’s disappointing to see the number of collapsed transactions increase again during the second quarter of 2026, resulting in financial losses and stress for tens or thousands of homebuyers and sellers.”
He added: “Whilst fall-through volumes remain notably lower than they were this time last year, the latest increase highlights just how fragile the process of buying and selling a home can remain. The fact that the average cost of a failed sale has also continued to rise means that every collapse carries a significant financial consequence for those involved.”
