The 海角视频's antiquated house purchasing process and rate of collapsed transactions are draining the economy of at least £1.5bn annually, one of Britain's largest high street banks has cautioned.
According to research from Santander 海角视频, more than half a million collapsed housing transactions are directly costing consumers £560m, with certain expenses, including mortgage and solicitors' fees, proving impossible to recover, as reported by .
This figure stands 40 per cent above previous government estimates of £400m.
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Roughly 85 per cent of individuals who endured a collapsed transaction suffered a financial loss, with the typical cost reaching £1,240.
Nevertheless, one in five experienced a loss exceeding £2,000.
Almost a quarter of those who had attempted to purchase a property saw the process collapse, with 17 per cent failing after one month.
Just under 45 per cent of collapsed sales occurred at or beyond the three month stage, highlighting the uncertainty purchasers encounter even during the final phases of acquiring a house.
David Morris, head of homes at Santander 海角视频, said: "Buying a home...for too many people, it's an uncertain and exhausting process that drains their mental, emotional and physical health."
Economic blow
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The dysfunctional house purchasing process has also damaged the broader economy, costing £950m each year, with the typical buyer investing 100 hours in activities connected to a collapsed transaction. Nearly 60 per cent of that time was consumed during standard working hours, resulting in diminished economic productivity, and ultimately costing £380m annually.
The laborious purchasing process has also reduced Britons' desire to relocate, creating barriers within the labour market, hampering economic growth and blocking first-time buyers from accessing the property ladder.
Morris said: "The homebuying journey is still operating in the confines of a framework that was established a century ago.
"This antiquated system is an increasingly heavy anchor weighing on the economy and fixing it must be key."
The report from Santander emerges following numerous banks, legal practices, mortgage brokers and estate agencies signing a charter committing to compress the process of purchasing and selling a property to 28 days, in attempts to repair the system.
HSBC, Legal and General and the Mortgage Advice Bureau were amongst the signatories.
System fit for today's consumer
Whilst the government has demonstrated dedication to enhancing the market, including its commitment to construct 1.5 million homes during its initial five years in office, Santander has acknowledged more action is required to boost consumer confidence.
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Santander is urging the government to transform the property market, including establishing a centralised property data system and expanding the deployment of AI to create a "seamless journey". The report stated: "Automating administration tasks removes the burden from conveyance and lenders, freeing up time to spend on the elements of transactions that require their expertise."
The high street lender also recommended supplying buyers with all essential information from the outset of the process and ceasing the deployment of temporary measures, such as stamp duty holidays, to attempt to stimulate market activity.
Morris commented: "While the government has put the housing market firmly on its agenda, as this research shows, the scale of the challenge remains largely underappreciated.
"That's why we're calling for powerful reforms to give buyers and sellers more confidence, ease the financial and emotional strain and create a housing system fit for the needs of today's consumers and economy."