The property market in the United Kingdom can vary dramatically in different areas and countries, particularly when comparing the stability of property sales in Scotland versus England. Recent data highlights a significant difference in the frequency of property sale collapses between these two regions.

Scotland’s Lower Rate of Property Sale Collapses

According to research from Quick Move Now, England experienced a relatively high rate of property sale collapses during July-September 2023, with approximately 27.3% of sales falling through. This rate is attributed to various factors, including challenges in securing mortgages, buyers getting cold feet, and gazumping—a practice where a seller accepts a higher offer from a new buyer after agreeing to sell to someone else.

In stark contrast, data from the Scottish property portal ESPC indicates that only 8.7% of properties listed for sale experienced a sale collapse in the period from July to October 2023. This suggests a more stable property market in Scotland compared to England.

The Role of Conveyancing Systems

Paul Hilton, CEO of ESPC, attributes this difference to the distinct legal and conveyancing systems in Scotland. The Scottish system is generally viewed as smoother and more efficient, primarily because it reduces the likelihood of property sales failing. One of the key differences is the early conclusion of missives (legal documents) in Scotland, which binds parties to a penalty if they withdraw from the sale after this point.

Property Chains and Solicitor Estate Agents

Property chains are less common in Scotland, though their frequency is slightly increasing. In such chains, the more transactions involved, the higher the risk of sale collapse. Solicitor estate agents, who are prevalent in Scotland, play a vital role in reducing these risks by performing due diligence before allowing clients to make offers. They ensure that the buyer is financially secure and less likely to back out of the sale.

Benefits for Sellers Using Solicitor Estate Agents

For sellers, employing a solicitor estate agent is highly advantageous. These agents identify potential issues with the property at the outset, such as defective titles or planning issues. This proactive approach contrasts with the typical process in England, where estate agents often do not involve solicitors until after a sale agreement, leading to the discovery of problems at a later stage.

Gazumping and Codes of Conduct

Gazumping, while a common problem in England, is rare in Scotland, especially when using a solicitor estate agent. These agents adhere to codes of conduct that, while not making the sale legally binding until missives are concluded, ensure the honor of verbal and written agreements of the initially accepted offer. This practice provides greater security for both buyers and sellers.