There are more than half a million failed property transactions in England and Wales every year – and younger buyers are likely to be hit the hardest.
This is evident from a new report from Santander, which raised concerns that first-time buyers and growing families were most at risk of having their home-buying plans derailed.
The research found that 36% of people aged 25 to 34 had experienced a failed property transaction, compared to 23% of the overall UK population.
In the Fixing the Broken Chain report, researchers found that the youngest buyers were more likely to feel the deep emotional tension that comes from navigating the homebuying process.
It found that almost two-thirds (61%) of 18-24 year olds felt constantly or often stressed during the transaction, compared to 54% of the wider population.
As a result, this was a daunting activity, especially among the next generation. 42% of 18 to 24 year olds and 38% of 25 to 34 year olds have considered delaying or giving up on buying a home.
For those able to cope with the turbulent system, the study found, there was a lack of affordable housing, as existing homeowners had little desire to move because the system was too complex.
A third (32%) of 55 to 64 year olds and 36% of 64 to 74 year olds said they would be less likely to move as a result of their previous buying and selling experiences. The result, the report said, was a vicious cycle and misallocation of housing in Britain, with older generations unable to downsize, second movers unable to upsize and first-time buyers left out altogether.
David Morris, Head of Homes at Santander UK, said: “Buying a first home or moving to accommodate a growing family should be a moment of joy, but for too many young people it has become an exhausting and uncertain ordeal that puts enormous strain on their finances and family life, let alone their mental health.
“This absolutely should not be the case for a transaction that represents one of their largest financial obligations.
“We need to take action to make it easier for people of all ages to buy and sell so we can get the market moving. That’s why we’re calling for some simple but powerful reforms that would give buyers and sellers more confidence, ease financial and emotional pressures and create a housing system fit for the next generation.”