Santander has warned the UK house buying process is impacting the economy

The UK’s outdated house buying process and consistent failed transactions are costing the economy at least £1.5bn a year, one of Britain’s biggest high street banks has warned.

According to a report from Santander UK , over half a million failed housing transactions are costing consumers £560m directly, with some costs, including the costs of mortgage and solicitors’ fees, unable to be clawed back.

This is 40 per cent higher than earlier government estimates of £400m.

Approximately 85 per cent of people who experienced a failed transaction reported a financial loss, with the average cost standing at £1,240. However, one in five reported a loss in excess of £2,000.

Nearly a quarter of people who had tried to bu

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