What happens if chain collapses before exchange?

The domino effect that a break in a house chain can cause is a nightmare scenario for sellers and buyers alike. You can watch months of hard graft and stress go to waste before your very eyes (not to mention the money), so it’s important to know what to do if your house chain is about to collapse or, indeed, at risk of collapsing any time now.

A recent Santander report estimated that 530,000 housing transactions fail across England and Wales every year, but new measures proposed by the UK government in October 2025 aim to reduce the risk of chains collapsing by bringing in binding contracts:

Here, we’ll go through everything you need to know, including what causes a chain collapse, how much it can cost and what you can do about it if it happens to you.

Table of Contents

• What happens when a house chain breaks?

• Common reasons for a house chain collapse

• I’m worried about a house chain collapse—what should I do?

• Frequently asked questions

What happens when a house chain breaks?

Chains can collapse for a whole host of reasons—the most common of which we’ll cover shortly—and they can be difficult to recover from if you had your heart set on somewhere.

What generally happens when a buyer or seller pulls out is that everything grinds to a halt, which can be incredibly frustrating for all involved. Sometimes, all it takes is a single link in the chain to break for the whole thing to collapse, with buyers potentially losing mortgage offers, sellers having to pay for more storage or alternative accommodation, and everyone facing the prospect of extra legal and admin fees.

How much can a house chain break cost?

The cost of a chain collapse is different from one situation to the next, but here are some rough estimates of what you might expect to pay if a buyer pulls out at the last minute:

This represents the minimum you’ll be expected to pay, with the reality likely being a fair bit higher, depending on your legal and personal circumstances.

It can get messy when buyers need to start looking for new homes and sellers need to relist theirs, so people can lose out on the perfect properties, while the ideal offers can disappear from view.

Read more: Everything you need to know about property chains

Common reasons for a house chain collapse

The longer a chain is, the higher the likelihood of something going wrong, but it doesn’t have to be eight or nine houses long to collapse. Here are some of the most common reasons that happen to sellers and buyers all the time:

Struggling buyers

Some buyers are hit with unexpected financial news, such as a job loss, which can lead mortgage lenders to retract their offers.

Indecisive buyers

Some buyers spend way longer than most looking at properties and even submitting and then sitting on offers, since they only become legally binding at exchange.

Exaggerating the truth

Lenders sometimes find that buyers lie to secure a mortgage in principle, which obviously means they get declined for a mortgage.

Sentimental value

Not all sellers are 100% sure about going through with a sale, so changes of heart are more common than you might think.

Struggles to find a new home

Some sellers with their homes under offer or Sold STC struggle to find their perfect home to move into and might pull out as a result.

Failed surveys

When surveys fail, buyers are within their rights to submit lower offers or pull out altogether to find a property with nothing wrong with it.

Gazumping

When a buyer swoops in with a higher offer and the seller accepts it, the whole chain gets shattered, with everyone left to start all over again.

Gazundering

Solicitors raising enquiries often lead buyers to pay for new surveys, which can reveal new reasons to lower their offers or pull out altogether.

Try and find out everything you can about buyers, including asking for proof of mortgage in principle, before you get too far down the line. If it’s already at risk of collapse, there are ways to stop it and keep the chain together.

I’m worried about a house chain collapse—what should I do?

The first thing to do when your house chain is at risk of collapse is to try to stay calm—it happens more often than you think and there are ways to avoid a total collapse if you act quickly.

Get in touch with your mortgage advisor and solicitor if you haven’t done so already. They will be able to guide you on possible next steps, especially if all your paperwork is ready to go in case you find another buyer.

There are a couple of other things you can do to save your chain from breaking: 

Getting cover: How Home Buyers’ Protection Insurance can help

When you’ve poured your heart, soul and savings into buying a home, it can be extremely disheartening to watch your chain collapse, but this is where insurance can come good.

While Home Buyers’ Protection Insurance won’t stop a chain from breaking, it can help protect your bank balance when it comes to legal costs, searches, surveys and other fees. That way, you can focus your energy on looking for that next home. 

Read more: What is Home Buyers’ Protection Insurance?

Finding a buyer ASAP: How The Property Buying Company can help

If you’re still very keen on the house you’ve got lined up and you can’t face seeing it slip away, a cash buyer like us can help you save the chain. The best bit? We can buy your house in a matter of days and take the pressure off the whole sales process for you.

Our reliable service helps you sell your home fast, which is especially useful if a prospective buyer has let you down at the last minute. All you have to do to get started on saving your chain is let us know your postcode and we’ll give you a free cash offer within 24 hours. 

After all the stress of thinking your chain is over, it really can be that simple to fix it.

✔ We can complete in as little as 7 days, so you can keep the chain together

✔ 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

Frequently asked questions