Guest Post by Ben Hernandez
With much of the world focused on this past weekend’s royal
wedding of Prince Harry and Meghan Markle, one can only hope the newlyweds will
not suffer the same fate as the majority of real estate deals in the United
Kingdom during the early months of this year.
According to a report published by independent bridging lender Market
Financial Solutions, a third of real estate deals in the U.K. fell through in
the first three months of 2018.
Market Financial Solutions extrapolated these figures from
a data set consisting of 2,000 adults in the U.K. In addition to tracking the number of lost
deals, the reasons as to why they fell through were recorded.
The majority of deals, 41 percent, were lost as a result
of a breakdown within the property chain—the seller’s inability to obtain
another home during the course of the transaction. 33 percent of failed deals were triggered by
the buyer’s inability to obtain financing on time and 16 percent was due to
mortgage lenders reneging on lending commitments.
Overall, it’s an alarming statistic given the current
growth in demand for real estate and the general optimism of the property
sector by market leaders in the U.K.
“The U.K. is renowned for its love of bricks and mortar,”
said Paresh Raja, CEO of Market Financial Solutions. “Many people strive to own a home, while real
estate has long been a popular asset among investors. However, amidst such strong demand for property,
it is concerning to see so many deals falling through after the formal house-buying
process has begun. Evidently,
difficulties in accessing the finance they need to complete the deal is a major
issue for buyers.”
The Market Financial Solutions report also revealed that
in the past 10 years, 11.91 million adults had an offer accepted. However, over 30 percent of those offers resulted
in a failed transaction, and deals falling through showed a financial impact of
$3,915 lost on average in solicitor and surveyor fees.
Despite this, U.K. real estate appears to be on the
rise. Mortgage provider Nationwide
publishes a Housing Price Index, which recently revealed that the average price
of a UK home rose by 2.6% in the year to April 2018 and is expected to increase
by 18% over the next five years—good news for the royal couple when they think
about purchasing a home together.
If a career in real estate makes you feel like a prince or
princess, don’t hesitate and get your real estate license today. Call (800)
617-3513 to enroll in the required pre-licensing courses with a school that
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