Destabilising influences such as the recent proroguing of Parliament are also expected to dampen confidence amongst home buyers, which could result in them delaying a house purchase or sale.
The warning has been issued by estate agent app, mio, which helps with sales progression and communication during housing transactions.
It was drawing on research by Quick Move Now which suggested that in a third of cases failed transactions would result in a chain collapsing.
It said uncertainty in the property market, which has lately been caused by the extended Brexit negotiations and recent political upheaval, can cause consumers to lose confidence.
This can result in them opting to delay moving decisions until certainty and stability are established and this can have a significant consequence on property chains. Indeed, when consumers were already feeling cautious due to an uncertain market outlook, the chances of them pulling out of deals they feel could be on the verge of breaking down or stagnating are heightened.
Communication
But mio is also offering advice to anyone going through the house buying or selling process at the moment to help reduce the chances of a collapse.
Jon Horton, product director of mio, explained communication was vital in these situations. He said: “Every hour that a sale stalls is another hour the customer has to find another property or agent, or begin questioning their investment.”
He said estate agents should educate consumers on how the sales progression worked to help to improve their confidence and protect transactions.
“It’s essential that buyers and sellers understand what a realistic transaction timeframe is for their area,” Horton added.
He also explained how both agents and consumers could improve their communication by embracing modern methods such as instant messaging via dedicated apps or WhatsApp.
“This approach could reduce time wasted following up on unanswered phone calls and abandoned email chains,” he said.
“However, it is all about finding a balance as there will be times when phone and email correspondence is necessary.”
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