20% of British home sellers suffer house sale collapse, report says

LONDON - A report said Monday that 20 percent of British home sellers suffered house sale collapse every year, rendering them a lot of time waste.

More than 300,000 property transactions are falling through every year, costing sellers 400 million pounds, or $543 million, according to a report published Monday by HomeOwners Alliance.

One in five sellers has experienced a sale collapse, incurring costs that average more than 2,727 pounds, or some $3,705, said the report.

Meanwhile, the study also revealed that nearly one in 10 sellers has been "gazundered," where the buyers lowered their offer just before the exchange of contracts.

The report came after the British government announced plans for a number of housing measures, including the introduction of voluntary reservation agreements.

These legally binding agreements would require both buyers and sellers to put down a non-refundable deposit to commit both sides earlier in the process.

The plans are being consulted upon, The Times newspaper said.

Paula Higgins, chief executive of the HomeOwners Alliance, told the British daily newspaper that "Gazundering and time wasting is a big problem."

"The home-selling system is so unreliable it's deterring homeowners from selling, adding to the housing shortage crisis as a lack of suitable homes is one of the barriers to people moving up the property ladder," Higgins said.