Resilience is a word we hear – and use – a lot when describing the UK property market. That house prices have continued to rise, albeit at a slower rate, over the past two years in spite of challenging macroeconomic conditions, most notably in the form of interest rate volatility, is a testament to the long-term strength of sector.
There is another word, however, that would accurately summarise the market at present: sticky.
Reports show that there is a notable lack of speed and fluidity at present. For instance, recent data from Rightmove reveals that the average home sale in Great Britain now takes 216 days from listing to completion.
Why? Well, geopolitical uncertainty and fluctuating predictions about the future direction of the Bank of England’s base rate have stymied progress in some corners of the market. Some buyers remain cautious, while sellers are having to adjust expectations around asking prices.
The resulting slowdown is not merely frustrating for property investors. It can also result in protracted – and, at times, motionless – property chains, which in turn increases the likelihood that one or more links along the chain will break as deals fall through.
Property chains are increasingly fragile
Data from Quick Move Now suggests that more than a quarter (26%) of residential property sales fell through in 2025 before completion. That figure is alarmingly high.
The same data points to the reasons for deals collapsing, the most common being a buyer changed their mind and pulling out (36%), followed by a buyer struggling to secure a mortgage (33%).
The knock-on effects bear consideration. Not only is an investor at risk of missing out on their desired property, but there are also likely to be lost fees. In fact, research from the Open Property Data Association found that the average property purchase results in £2,830 of unrecoverable costs.
Bridging finance for broken chains
For property investors, this is a pertinent issue with several risks: losing out on an attractive asset, losing fees in the process, and losing time and resource in trying to pursue deals that, for reasons out of their control, do not progress.
The question, then, is what can investors do to regain some control and, more precisely, overcome the hurdles presented by slow, lengthy or broken chains?
Bridging finance is one potential solution. Short-term loans can prove useful for an investor caught in a broken chain, providing the liquidity needed to proceed with an acquisition without having to wait for another property to sell or a longer-term finance arrangement to complete.
Indeed, helping investors to navigate broken property chains was front of mind when RAW recently launched its new range of bridging loans. Complementing our buy-to-let mortgage offering, we are prioritising speed and flexibility with our bridging proposition, which includes loans of £100,000 to £4 million, maximum LTVs of 60%, and terms from three to 18 months.
Regaining control
Property chains will always contain an element of uncertainty. Buyers change their minds, surveys uncover problems, valuations come in below expectations and mortgage applications do not always proceed as planned.
But investors do not necessarily have to allow someone else’s failed transaction to scupper their plans.
With appropriately structured short-term finance and a credible exit strategy, bridging loans can do exactly what their name suggests – enable an investor to bridge the gap, resolve a short-term pain point, and move ahead with their plans confidently. In the current ‘sticky’ market, that is proving particularly important.
To find out more about RAW’s new bridging proposition, click here, or speak to a member of our team.