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Home purchase Failures Rising in U.K. With Banking Limits

by Patrick Gower and Neil Callanan, September 2nd 2014

More Britons are pulling the plug on home purchases amid signs that the market’s 16-month rally is coming to an end after banks tightened mortgage standards.

In August, failed deals rose to 26.4 percent from 24.4 percent a year earlier, driven by potential buyers getting cold feet and walking away, said Donna Houguez, a market analyst for residential property investor and data provider Quick Move Now. In July, failed purchases were marked by willing buyers who were prevented from closing deals because they couldn’t secure a big enough mortgage, she said.

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