New data suggests that more than two in five homes listed for sale over the past three years never actually sold, highlighting growing strain in the housing market. Research points to a mix of weak buyer demand and unrealistic pricing expectations from sellers as key reasons behind the high level of failed transactions.
The findings, based on a survey of 2,000 homeowners by property website Zoopla, show that 44% of respondents said their home did not sell after being listed with an estate agent. Among those, around 34% later admitted their asking price had been set too high, suggesting pricing strategy played a major role in unsuccessful sales.
Even among homes that did eventually sell, price reductions were common. Just over half of sellers reported cutting their asking price before completing a sale, while in the first quarter of this year, properties typically sold for around 3.5% below asking price, equivalent to roughly £18,800 on an average home.
Zoopla has warned that overpricing can significantly reduce the chances of selling. Its analysis suggests that pricing a property even slightly above local market levels can deter potential buyers and lead to longer periods on the market. In contrast, competitively priced homes are more likely to attract interest and can sometimes trigger competitive bidding, potentially supporting stronger final sale prices.
Sellers struggling to match market expectations
According to Zoopla’s executive director Richard Donnell, many homeowners are out of touch with current pricing levels, particularly as the average seller has typically owned their home for around nine years before listing it. He noted that accurate pricing requires up-to-date local market insight, often gained by consulting multiple estate agents.
The research also highlights differences in behaviour between age groups. Sellers under 35 were more likely to admit knowingly pricing their homes above market value, often in an attempt to fund their next move up the property ladder. However, this group also had lower success rates, with just over half completing a sale.
In contrast, older sellers, particularly those over 65, were more likely to be downsizing and less reliant on achieving a higher sale price. This group recorded a higher proportion of successful sales, with around 63% managing to complete transactions.
Leasehold concerns adding further pressure
Alongside pricing issues, broader structural challenges in the housing market are also contributing to slower sales. Leasehold properties, in particular, continue to face scrutiny due to concerns over service charges, ground rents and building safety issues.
Recent analysis from estate agency group Connells Group shows that leasehold transactions are taking significantly longer to complete than freehold sales. On average, leasehold homes now take around 155 days to reach exchange, which is considerably slower than freehold properties.
The data also shows that delays across the wider market have increased in recent years, with more transactions falling through after several months. Around 23% of failed sales now collapse after three months, compared with 18% in 2019, reflecting added complexity in the buying process.
Industry figures suggest that extended legal checks, longer property chains and compliance requirements are all contributing to slower completions. Experts have warned that leasehold-related complications are a key factor behind these delays.
Calls for reform as delays continue
The slowdown has intensified calls for reform of the leasehold system, with campaigners arguing that the current structure is making the buying and selling process more difficult for homeowners.
While the government has introduced measures such as banning ground rents on new leasehold properties since 2022, further reforms aimed at existing leases are not expected to take effect until later in the decade.
Some industry voices argue that uncertainty around future changes, combined with existing costs and legal complexities, is continuing to weigh on market activity and transaction speed.
Overall, the latest findings suggest that while weaker demand is part of the issue, overpricing and structural market frictions are playing an equally important role in the growing number of failed property sales.
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