The Barclays Property Insights report polled 2,000 people and found that buyers were put off from moving in the future or would be more selective in their choice of buyer or property because of the unexpected expenses related to property chains.
On average, people put £4,954 aside to cover third-party expenses such as surveys or legal costs. These costs can increase due to a breakdown along the chain, due to things like wasted surveys or extra time needed by solicitors.
Barclays found that those who experienced problems along the chain spent around £2,127 more on average, an increase of 43% compared to what was budgeted.
For the 22% of people who had a housing transaction fall through, chain breakdown was the main reason, as either the buyer or seller pulled out.
Around 13% said they were gazumped and had the seller accept a higher offer from another buyer, and 11% were gazundered and had the buyer lower their offer at the last minute. Some 15% admitted to attempting these tactics themselves, leading to a collapse in the property chain.
The big BTL planner: Key dates landlords need to know
Sponsored by BM Solutions
Due to these experiences, 28% of people who were previously in a chain said they would put off moving for as long as possible to avoid the stress, and 24% said they wanted to find their forever home and stay in a property for longer.
A further 15% said they would only sell to a cash or first-time buyer in the future, while 13% would buy a new-build home to avoid getting caught up in a property chain again.
Demand for larger homes
Hinting at the demand for forever homes, Barclays’ research found that semi-detached and detached homes made up most completions across the majority of regions in the UK, with the exception of Greater London.
In the capital, flats made up the majority of completions, accounting for 55.5% of activity. Barclays said this was due to higher costs and constrained affordability in Greater London.
The balance of sales was more evenly distributed in Scotland, where flats made up 27.3% of completions, above the national average of 11.8%.
Barclays found that the owners of houses were more confident about the value of their homes increasing when compared to flat owners. Its research showed that 78% of semi-detached owners and 75% of detached owners believed the value of their home had risen since they purchased, compared to 58% of flat owners.
High LTV choice boosts confidence
Although 31% of renters continued to cite raising a deposit as the main barrier to homeownership, optimism that they would get onto the housing ladder had improved, with 15% saying they believed they could buy a home in the next 12 months, up from 12% in December.
Similarly, the share of renters who said they would not be able to buy without financial support fell from 59% to 52%.
Barclays’ mortgage data showed that the average deposit was £59,057, and higher among first-time buyers at £62,272.
Rising house prices were the main challenge for renters, with 43% citing this.
Jatin Patel, head of mortgages, savings and insurance at Barclays, said: “Movers often face battles on two fronts, as the abundance of long property chains adds acute stress into the process. The new-build market can provide part of the solution, removing the chain links on the sell side, but we also support reforms to modernise, digitise and ease the tension in the home buying system.”
“The start of 2026 has shown encouraging signs for prospective buyers. Higher-loan-to-value products have eased deposit requirements, with first-time buyers beginning to reap the benefits. However, regional disparities underscore the importance of working with local brokers and to bring homeowners bespoke solutions for their needs.”
Julien Lafargue, chief market strategist at Barclays, said: “In addition to frictions in the process, the UK housing market has also to contend with a mixed macroeconomic picture. Growth slowed in the second half of 2025 and the UK labour market is still softening.
“That said, the consumer remains broadly resilient, suggesting that growth could rebound in 2026. As we look into the first half of the year, political uncertainty and key local elections scheduled for May could lead to a ‘wait-and-see’ approach for businesses and consumers alike.”
