Continuum has urged the government to overhaul England's residential property purchase system, arguing that rising numbers of collapsed property chains are leaving buyers facing unnecessary costs and delays.

The Plymouth-based financial advice firm said its advisers are now seeing buyer withdrawals in the majority of property chains, compared with such collapses being relatively uncommon in the past. Under the current system in England and Wales, buyers can withdraw from a purchase without penalty at any point before contracts are exchanged.

Continuum is calling for a system similar to Scotland's, where buyers commit funds upfront and are placed under a legal obligation to complete the purchase. It believes such reforms would reduce speculative offers, discourage gazumping and gazundering, and provide greater certainty for buyers and sellers.

The firm estimated that buyers can lose up to £3,000 when a property chain collapses through wasted spending on conveyancing, surveys, searches and mortgage application fees, although average losses are typically lower. It added that delays can also expose buyers to higher mortgage costs if interest rates change during the transaction process.

Anthony Harris, an independent financial adviser at Continuum, said: "If buyers had to commit funds up front, along with a legal obligation to buy, this might initially slow the offers being submitted, but it would also mean only truly serious offers were being submitted. Also, it might stop 'gazundering/gazumping' which is very upsetting if you are on the wrong side of either practice.

“New Prime Minister Andy Burnham has previously proposed reforms to the house buying system. Now could be the correct time to also address the wider problems in the English residential property buying system.”

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