Moving Day Delays – 115,000 delayed moves; cost to homeowners £15 million

Thousands of homeowners across the UK have experienced moving day delays and cancellations as a result of funds arriving late and sellers taking longer to vacate properties, losing hundreds of pounds in the process, reveals research conducted by HomeOwners Alliance.

 

One in five homeowners (19%) who bought their home within the last 2 years experience moving day delays because of funds not arriving on time and sellers vacating their homes late; equating to 115,000 delayed moves.

 

20,500 of these homeowners could not move on their planned moving date because funds did not arrive in time.

 

More than one in four (26%) affected by moving delays or cancellations incur costs averaging just over £500; while one in seven (14%) face costs of over £1,000. The total cost to homeowners is over £15 million.

Moving Day Delays

 

According to the study conducted by YouGov on behalf of HomeOwners Alliance and the secure payments provider Shieldpay, a massive 115,000 home moves have been delayed each year because funds didn’t arrive on time and sellers took longer to vacate properties. A shocking 20,500 moves had to be cancelled altogether because of funds not arriving in time.

 

The survey found movers in a property chain are more likely to be affected by delays. One in four (25%) homeowners buying in a chain report delays or cancellations on moving day.

 

What’s more, homeowners who experience delays or cancellations face more than just inconvenience.  26% of those affected incur costs of, on average, £509 and one in seven (14%) lose over £1000.

 

Typical costs include hourly waiting charges from removal companies (39%), storage fees (27%), removal company cancellation charges (16%), hotel/ accommodation costs (15%) and late completion charges (9%).

 

Meanwhile, one in three homeowners (34%) who bought in the past two years have to chase either their conveyancer or lender on moving day to check the status of funds.

 

Research Findings:

One third (36%) of homeowners bought in a chain.

Incidence of buying in a chain

Nearly one in five homeowners (19%) who bought their home in the last 2 years experienced moving day delays as a result of funds not arriving on time and sellers vacating their homes late; equating to over 115,000 delayed moves.

  • One in seven of all UK homeowners (14%) and one in five (19%) homeowners who have bought in the past two years experienced moving day delays as a result of funds not arriving in time or sellers taking longer to vacate properties.
  •  ‘Property-chain buyers’ are more likely to be affected by delays. One in four (25%) homeowners buying in a chain experience moving day delays as a result of funds arriving late or sellers taking longer to vacate the property.

Incidence of Moving Delays

3% of homeowners who bought within the last 2 years could not move in on their planned moving date because funds did not arrive in time; equating to 20,500 cancelled moves.

  • 1% of all UK homeowners and 3% of those who bought within the past two years had their move cancelled on their planned moving day because funds did not arrive in time.

More than one third (34%) of homeowners who bought in the last 2 years needed to chase the status of funds on moving day with their conveyancer or lender. 

  • Nearly one in five of all UK homeowners (18%) and one in three (34%) who bought in the past two years chased either their conveyancer or lender on moving day to check the status of funds.

More than one in four (26%) affected by delays or cancellations on their moving day incur costs.

  • Costs include: hourly waiting charges from removal companies (39%), storage fees (27%), removal company cancellation charges (16%), hotel/ accommodation costs (15%), late completion charges (9%).

Cost of moving day delays

The cost of moving day delays and cancellations averages just over £500 for each affected homeowner. 

  • One in seven (14%) incur costs of over £1000.
  • The total cost to homeowners is just over 15 million.

Estimated costs of moving day delays

In relation to the home purchase process, costs associated with fund transfers and the lack of certainty and transparency over the whereabouts of funds are issues for homeowners.

  • Among those who purchased a home in the last 2 years, top inconveniences relating to the home buying purchase process include: Transfer fees – conveyancer/ solicitor transfer fees (30%), bank transfer fees (17%). As well as, uncertainty and lack of transparency over whereabouts of funds – uncertainty transfer reached conveyancer in time (19%), uncertainty mortgage funds reached conveyancer in time (19%), lack of transparency over whereabouts of my money during payment process (13%).

Home Payment Process Issues

Methodology

  • All figures, unless otherwise stated, are from YouGov Plc. The surveys were carried out online. The figures are weighted and are representative of all UK adults (aged 18+). Total sample size is 4507 adults of which 2946 are Homeowners; 324 of whom bought within the last 2 years.  Fieldwork was undertaken 1st-3rd October, 2018.
  • Calculations for moving day delays: 625,000 owner-occupier moves in 2016-2017. Source: English Housing Survey demographic characteristics of recent movers
  • 14% of all UK homeowners have experienced moving day delays = 87,438 moves
  • 19% of UK homeowners who bought in past 2 years experienced delays = 116,313 move
  • 7% of all UK homeowners experience delays because money did not arrive in time = 46,500 moves
  • 10% of UK homeowners buying in past 2 years experienced delays because funds did not arrive in time = 60,000 moves
  • 3% of UK homeowners buying in past 2 years had move cancelled = 20,500 moves
  • Calculations for costs incurred as a result of moving day delays/ cancellation. Average cost per affected homeowner is £508.82. Total cost to homeowners who bought in last 2 years is 116,313 moves x 26% incur costs x £508.82 = £15,387,419; just over £15 million in total.

 

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