According to research into 2,000 respondents from Together, 57% of people who are currently in a purchase chain said they have been put off from making an offer on another home, while two-thirds said the experience was more stressful than raising a deposit.
The study revealed that 60% of UK homeowners had been caught up in a property chain when buying a home, with 24% delayed in the last five years.
Together suggested that with the most recent English Housing Survey reporting 618,000 households moved in the last 12 months, there could have been as many as 49,000 property chains in the last year alone.
Together said the home buying process needed an overhaul, as the chain delays jammed the housing market and made it harder for first-time buyers to get onto the property ladder, as well as putting more pressure on the rental sector.
Separate research suggested it took 109 days from a sale being agreed to exchange, 65% longer than it did in 2007.
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Further, Together’s study found that while 29% of buyers waited 2-3 months to complete, 7% waited as long as 4-5 months. A further 5% reported that this process took at least six months.
Resolved with short-term finance
The lender said some buyers and sellers were turning to bridging loans to break property chains, as a quarter said it helped them during a purchase.
Bridging loans can be used to purchase a property quickly and avoid delays, instead of waiting for a long-term mortgage to be approved. However, Together said their use was often overlooked and misunderstood.
Its research also found that 59% of people currently in a property chain would consider bridging finance if it were guaranteed to break the chain.
Ryan Etchells, chief commercial officer at Together, said: “While a common occurrence, maddening property chains can ramp up the costs involved with buying a home, and adding to the emotional stress and admin that homemovers have to deal with. Our property market is broken and needs a thorough overhaul; we must take steps to address it.
“This is why it’s important to increase the awareness of simple solutions like bridging, as a significant portion of potential buyers and sellers simply aren’t aware of how beneficial these loans can be. Whether to break out of a time and money draining property chain, to help fund renovations or for buying at auction; this type of financing can be quickly accessed and help people move forward with their property plans now and in the future.”
