The process of purchasing a house ‘tiring’ to hurt the economy

The process of purchasing homes that are outdated by Britain and failed transactions that consistently swallow economic costs of at least £ 1.5 billion per year, one of the largest high street banks in the UK has warned.

According to reports from Santander UK, more than half a million housing transactions that failed to cost consumer costs £ 560 million directly, with several costs, including the cost of a mortgage and the cost of lawyer, could not be re -scattered.

This is 40 percent higher than the previous government estimate of £ 400 million.

Around 85 percent of people who experienced transactions that failed to report financial losses, with an average cost of £ 1,240. However, one in five reported losses of more than £ 2,000.

Nearly a quarter of people who have tried to buy property that reported the process failed, with 17 percent collapsed after one month.

Only under 45 percent of failed sales occur in or outside the three -month sign, emphasizing what is faced by buyers of uncertainty even at the last stage of buying a house.

David Morris, head of the house in Santander UK, said: “Buying a house … for too many people, this is an uncertain and tiring process that drains their mental, emotional, and physical health.”

Hit Economy

The process of purchasing a damaged house also has an impact on a wider economy, for £ 950 million per year, with the average buyer spends 100 hours involved in activities related to failed transactions.

Nearly 60 percent of the time was taken during regular working hours, which caused losses in economic productivity, and eventually cost £ 380 million per year.

The complicated purchasing process has also reduced British appetite to move house, add friction to the labor market, slow down economic growth and prevent buyers from entering the property stairs.

Morris said: “The journey of home buyers is still operating within the limits of the framework that was established a century ago.

“This ancient system is an increasingly severe anchor that weighing the economy and fixing it must be a key.”

Reports from Santander emerged after a number of banks, legal companies, mortgage brokers, and housing agents signed a charter that promised to reduce the process of buying and selling property for up to 28 days, in an effort to improve the system.

HSBC, legal and general and mortgage advice bureaus, including among the signing.

The system is suitable for current consumers

While the government has stated a commitment to increase the market, including a promise to build 1.5 million houses during the first five years in power, Santander has conceded more that needs to be done to increase consumer confidence.

Santander called on the government to modernize the property market, including introducing a centralized property data system and expanding the use of AI to create a “smooth journey”.

The report says: “Automating administrative tasks to remove burdens from transportation and lenders, free time to be spent on the elements of transactions that require their expertise.”

High Street Bank also suggests giving buyers with all the information needed at the beginning of the process and ending the use of short -term solutions, such as stamp duty holidays, to try to increase market activity.

Morris said: “While the government has placed a strong residential market on its agenda, as shown by this research, the scale of the challenges is still largely less appreciated.

“That is why we call for strong reforms to give buyers and sellers more confident, alleviate financial and emotional tensions and create a housing system that is suitable for the needs of consumers and the current economy.”