Everything You Need To Know About Property Chains

There aren’t many things more stressful in modern adult life than buying and selling properties. With all the new terminology, time pressures and toing and froing of property chains, it can easily feel like a lot.

That’s why we’ve put together this guide to how property chains work, how you can help save your chain, and what you can do to keep your sale alive if the chain does break.

Table of Contents

• What is a property chain?

• What does chain-free mean and is it a good thing?

• Can a property chain collapse?

• What happens if my chain collapses after exchange?

• What can I do if my chain collapses?

• How The Property Buying Company can save your chain

What is a property chain?

A property chain comes about when both buyers and sellers are reliant on one another to push their transactions through, usually when they need the funds from the sale to fund an onward purchase. 

At the start of the chain, you’ll typically have first-time buyers or renters who don’t need to sell, while at the end of the chain, you’ll find the people who only need to sell a property. If you are both buying and selling, you’ll be somewhere in the middle, depending on how many links the chain collects.

Read more: How long is the average property chain?

How do property chains work?

A chain is basically a sequence of property transactions that all need to happen simultaneously or as close to as possible—the longer the chain, the greater the risk of collapse. If one property cannot complete on time, every other transaction is put at risk.

Read more: What happens if my chain collapses before exchange?

A basic property chain might look something like this:

Many chains are much longer than three properties long. If you ask your estate agent, they should tell you how many properties are involved in the chain. Once either a buyer who doesn’t need to sell their own home to finance the deal or a seller who doesn’t need to buy a new property enters the chain, it will become ‘closed’.

Can you buy and sell a house at the same time?

Yes, most people buy and sell a house at the same time, especially if they are already on the property ladder, but it can still be a challenging situation.

Whether downsizing or upsizing, many people will need the sale of their existing house to fund their next one, so they’ll need to do both simultaneously.

Read more: How to buy another house before selling yours

Factors like this interdependency and possible financing issues along the way can break property chains, so it can become quite complicated.

What does chain-free mean and is it a good thing?

There has recently been a dramatic decrease in ‘chain-free’ property transactions. In 2022, Today’s Conveyancer reported that 73% of buyers had bought their house in a chain-free transaction, which was an increase from 69% in 2021. In 2024, though, Zoopla reported that only 32% of homes currently for sale are being marketed as chain-free, which was a difference of 41%.

Research quoted on Estate Agent Today in 2024 suggested that chain-free properties actually command a higher premium than other properties, to the tune of 3.9%, such is their desirability.

While the decline in chain-free homes shows growing competition for these properties amongst first-time buyers or cash buyers, the rise in transactions dependent on chains reflects an increasing number of homeowners using the equity in their current homes to fund onward purchases. 

This could be an indication of greater financial confidence and market liquidity, as more people can access and effectively use their home equity.

Read more: What happens to equity when you sell your house?

What does no upward chain mean?

No upward chain and no onward chain mean the same thing: that the seller is not reliant on a sale of an existing property to purchase their next one. This is often the case when the property is:

• Rented accommodation

• Inherited

• A second home

• Being sold as the seller is moving in with a partner

The Property Buying Company is also classed as a ‘no upward chain buyer’, as we are not dependent on a further purchase. We have a multi-million-pound cash reserve ready to buy your house, as soon as you are ready to sell.

Can a property chain collapse?

Yes, property chains can collapse because the sale is not legally binding until the contracts are exchanged. Some of the most common reasons your chain may collapse include:

• Your seller changes their mind

• The surveyor reveals poor survey results

• A house seller may have difficulty securing a mortgage for their next property

• Gazumping

• Gazundering

• Personal circumstances, such as a bereavement or a divorce

What happens if my chain collapses after exchange?

If you are part of a broken property chain that has collapsed after the exchange, don’t panic—you can still save your sale. 

Pulling out after exchange makes a buyer liable for damages, so you will be able to take them to court and claim compensation.

Ask your estate agent for the reasons your buyer pulled out. They may think the home needs improvements or other small fixes, which could keep your sale on track if you agree and carry them out.

Read more: When should you reduce your house price?

If it’s a financial issue and your buyer is trying to gazunder you, lowering the price or opening negotiations are options to save the sale, but this is where a cash buyer can be the ideal solution. They will be able to buy your property on a timescale that suits you and make sure you don’t miss out on the onward purchase of that dream house of yours.

What can I do if my chain collapses?

Firstly, contact your estate agent to find out more. You might yet be able to keep the lines of negotiation open with your prospective buyer.

If they are set on pulling out and you need the sale to fund your next property, then a cash-buying company could be the way forward. Cash buyers will purchase your property for a cash sum, sometimes within days, allowing you to buy the home of your dreams without being caught up in the chain collapse.

A bridging loan could also be an option to help you afford both your current home and your new home at the same time, but it can be a very expensive way to borrow.

How The Property Buying Company can save your chain

If you find yourself at your wits’ end with the potential chain collapse, you can still sell your home quickly by taking advantage of our position as a cash buyer. We have previously bought houses from people like you within seven days and saved chains from collapse in the process. 

Did you know: In 2015 alone, The Property Buying Company have or are in the process of helping purchase 181 properties that are stamp-exempt!

If you share your postcode, we will be in touch within 24 hours with a free cash offer—you’ll have no obligation to proceed, but it can be a great option if you need to act quickly and fulfil your position on the property chain.

✔ We can complete in as little as 7 days (before an estate agent will have even listed the property)

✔ We are cash buyers, so there’s no need for delays or investor approvals

✔ We don’t do mountains of paperwork and we don’t believe in waiting around

✔ We are members of The Property Ombudsman and the National Association of Property Buyers, so we act with integrity

✔ We cover your fees, including solicitors, if you choose to use ours

Simply get in touch with your postcode today and you could be in your new home in no time.