Time to mend broken chain?

Santander UK urges overhaul of 'antiquated' home-buying process

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The home-buying process is "antiquated" and sales that fall through are costing the economy at least £1.5 billion per year, according to a report for a major bank.

More than half a million failed transactions a year across England and Wales are costing consumers about £560 million directly and a £950 million hit to the wider economy, the calculations commissioned by Santander UK indicate.

Its "fixing the broken chain" housing report indicated that nearly a quarter (23%) of people said they had tried to buy a property, only for that process to fall through.

The report said: "For most people, buying a house is their biggest financial commitment.

"The process as it stands simply does not reflect that. In an era that is marked by digitisation and ease for so many areas of day-to-daylife, the property market sticks out like a sore thumb."

In the report, David Morris, head of homes at Santander UK, said: "Our conservative calculation shows that £1.5bn a year is lost in the economy and by consumers from failed property transactions."