Housing transactions could be delayed due to Bank of England technical problem

The Bank of England’s RTGS (Real-Time Gross Settlement Infrastructure) payment system is not working due to ‘a technical issue related to some routine maintenance’, therefore CHAPS is unable to process payments, which could impact on people buying a home.

In a statement the Bank said: “We are working to address this issue as quickly as possible, and restart the RTGS payment system in a controlled manner. The most important payments are being made manually and we can reassure the public that all payments made today will be processed.”

CHAPS (Clearing House Automatic Payment System) is the electronic transfer of money between two bank accounts that will clear the payees account on the same working day provided instructions are received before 3.15 pm.

Phil Kenworthy, CHAPS managing director, commented: “CHAPS will be extending its operational day to enable its participants to submit and receive CHAPS payment instructions later than normal. Any customer who is waiting for a CHAPS payment to settle today should speak to their own bank.”

However, Mark Hayward, managing director of the National Association of Estate Agents, is concerned about the impact on house transactions and home moves that should be going through today.

He said: “Whilst Monday is not the busiest day in terms of completions, the failure of the payments system for UK house purchases will have a cascading effect and it is likely any payments will now be held up for a day or more as money takes time to transfer, which also means a delay for those hoping to move.

“This week is half term for many, so it will be a time when a lot of people are trying to move house – no doubt it will be a frustration for those that are now delayed.

“The one part of a sale which is fixed is the completion date – with payments not being able to be processed today, this will not only have an effect in terms of the completion date moving, but also accompanying arrangements which may have been scheduled, such as moving support or van hire and the transfer of utilities to the new address.”