When buying a home, it’s typical to find yourself in a property chain, which is the term given to the process of having multiple buyers and sellers who are linked together and depending on one another’s transactions to complete. Understanding property chains before you purchase a home is important so that you can make informed decisions and set realistic expectations for your moving process.

We explain what a property chain is and how they work, plus important things to know about property chains so that your home-buying journey will run as smoothly as possible. Plus, find out why a new-build home has no chain, and could be a great choice if you want your move to be as stress-free as possible.

What is a property chain?

A property chain is the term given for a sequence of connected properties in the buying and selling process.

A property chain can be very short (for example if you’re a first-time buyer, and/or that the sellers of your purchased property are moving into a home that is unoccupied), or long (meaning that there are several buyers waiting for their own sales to go through). Each of these chain transactions are linked together because they are dependent on another sale being completed successfully, and if one falls through then delays or breaks in the property chain can occur, or it could collapse completely.

When buying a house, if a home is advertised as ‘chain free’ or ‘no onward chain’ it means that the seller is not buying another property after their home sells and is therefore not reliant on the sale of their home for an onward transaction to go through. One of the most appealing reasons to buy a new-build Bellway home is that they are always chain free, and ready to move into as soon are you have your keys – one less thing to worry about.

Your estate agent can inform you of how many people are in the chain that has been created.

How do property chains work?

A property chain forms when multiple sales and purchases are linked together, therefore there are at least two or three parties in any property chain – but there could be as many as 10 ‘links’ (or more!).

The first link of a property chain forms when a first-time buyer or a buyer without a home to sell has an offer accepted on a property. If the sellers of that property are using the proceeds of their sale to purchase their next home, that means there are at least three parties in the property chain; the chain will ‘end’ when one of the parties is selling their property but not buying another.

Here's an example of what a four-party property chain could look like:

All parties in the property chain must mutually agree on a completion date, which is the day on which each of the property sales will legally complete. On this day, all sellers must vacate their properties, and their buyers can pick up their keys and move in.

Our guide to what happens on completion day explains this final stage of the home-buying process in more detail.

Why do property chains cause delays?

In most cases, buyers find that being in a chain doesn’t prevent them from completing on their new home in a timely manner, with the average time to sell a home in the UK being five months, however if complications occur or you’re in a longer chain it could stretch to half a year or more. The process can be slowed down by several factors and the more people in the property chain, the more likely delays could be.

Possible reasons for delays, or breaks in the property chain include:

• a buyer pulling out of a sale;
• a seller accepting another buyer’s offer (gazumping);
• a buyer’s mortgage not being approved or a delay in the application process;
• a RICS Home Survey revealing issues that buyers are using to negotiate a lower price;
• an issue during the conveyancing process;
• unforeseen personal events such as sickness.

While most of the above don’t mean that the chain will collapse completely, there’s more chance of complications occurring when a buyer withdraws from the chain entirely, as the sellers of that home will have to find another buyer to replace the one who has withdrawn. It is solely the seller’s responsibility to do this. The other buyers in the chain just need to wait – and inform their solicitor and estate agent – although understandably this can be frustrating.

How to avoid property chain problems

There are some things that you can do to avoid, or greatly reduce your risk of property chain problems during your next home move:

Get expert mortgage advice and support

Data shows that mortgage difficulties are the primary reason why property sales fall through before completion, which could make working with an independent mortgage advisor to navigate the process an appealing option.

Independent mortgage advisors (also known as mortgage brokers) are not connected to any one lender and are qualified to provide you with impartial financial advice, search the entire mortgage market to find you products that are suitable for your individual circumstances, and support you throughout the application process – so you can proceed with confidence. If you do come up against any issues with your mortgage application, from completing the paperwork to needing to find a new mortgage offer, they’ll be able to help you and keep your property chain on track.

It’s completely optional to appoint an independent mortgage advisor when buying a home as you can manage the mortgage application process yourself. However, it’s worth considering particularly if you have any potentially tricky circumstances such as having a low deposit, recently starting a new job, or being self-employed, or you just want the reassurance of expert advice and support throughout your journey.

Sell your current home and move into rented accommodation

If you are currently living in the home you are selling, a way to mitigate potential chain-related issues is to sell your home and move out before buying your next property. Most people who do this stay with relatives or move into rented accommodation with a flexible leave date in the meantime.

This can speed up the process and you’ll be a more appealing and reliable buyer in a competitive market, as you’ll have no downward chain and a defined mortgage deposit waiting for your next property, or you could even be a cash buyer.

However, there are important considerations to make before proceeding with this option. If you don’t find a home that you want to buy, or the people ahead of you in the property chain experience any issues then you could be in rented accommodation for longer than anticipated, which could impact your finances and lifestyle; there is also the potential that unanticipated fluctuations in the property market could impact your budget. You will also need to be mindful that a temporary living situation doesn’t influence you to make a rushed decision on a property purchase, especially if you are moving house with children and want to get settled into a new home as soon as possible.

Choose a chain-free buyer for your current property

If you are selling a home and are fortunate to receive multiple offers from prospective buyers, choosing a chain-free buyer with no property of their own to sell can make the process more straightforward.

Whether they’re buying their first home or have already sold and moved out of their previous property, a buyer with no downward chain could be a reliable choice; they will be less likely to pull out of the sale due to chain-related issues, and they could also have greater flexibility on a completion date.

Buy a chain-free home

A chain-free property is extremely desirable for buyers as its sale is not connected to any onward transactions – whether because the seller(s) is not using the funds from the sale to buy another property, or it’s a new-build home being sold by the developer. With no upward chain, your purchase won’t be delayed by anyone else waiting to sell, which could mean you move sooner.

When you buy a chain-free new-build Bellway home, everything from the décor to the appliances is perfectly brand new - all you need to do is pack up your belongings and settle straight in. Plus, if you have a home to sell you could take advantage of Bellway’s Part Exchange or Express Mover schemes; both of which are designed to help you secure your perfect Bellway home, and cover your estate agent fees to save you thousands.

With our Part Exchange scheme, we buy your property, put it on the market and pay your estate agent fees, leaving you free to reserve your dream Bellway home knowing that you have a buyer secured – and you can stay in your current home until your new one is ready. Part Exchange is available on selected plots and developments, so speak to our sales advisor at your preferred Bellway development to find out more.

On the other hand, our broadly available Express Mover scheme takes the stress out of finding a buyer for your home as we work with a local estate agent to do this for you, and take care of their fees. As soon as an offer is accepted on your property, we’ll invite you to reserve your new Bellway home.

What happens when a property chain breaks?

As we explained above, there are several possible reasons why a property chain can break – from a seller accepting a higher offer, to a professional house survey raising red flags for a buyers which may lead to renegotiations on the purchase price or even pulling out of the sale altogether. In England and Wales, a buyer or seller can pull out of a sale at any time before they exchange contracts, as this step is legally binding and there can be significant financial penalties for withdrawing after contracts have been exchanged.

If one link in the chain breaks before exchange of contracts, then it can have implications for the buyers in the rest of the chain. It is solely the responsibility of the seller of the property to find another buyer to replace the one who left the chain so that it does not collapse, and everyone else can proceed with their transactions in a timely manner and adhere to the agreed completion date.

You will have to decide whether you want to wait for a renegotiation between the buyer and seller, a replacement buyer to be found (which can happen reassuringly quickly in a booming property market), or to pull out of your purchase and look for another property. Unfortunately, if you’ve already spent money on searches, surveys and legal fees, you’ll lose this money if you do decide to pull out, or the entire property chain collapses.

Tips to speed up the property chain process

While there isn’t a surefire way to know how long the property chain process will last, there are things you do to potentially speed it up:

• Work with an independent mortgage advisor to navigate the application process
• Time your house sale wisely for a quick sale and the best possible price, or use a scheme such as Bellway’s Part Exchange or Express Mover to help you buy your new-build home sooner
• Find a chain-free buyer for your current home and/or buy a property with no onward chain
• Make sure you have all the documentation you need to sell your home, including an up-to-date energy performance certificate (EPC)
• Address any known issues with your current home that a buyer’s RICS Home Survey might highlight, to prevent later delays
• Appoint a reputable property solicitor or conveyancer who will work hard to keep the property chain on track
• Keep open communication with all parties and respond promptly to any requests for information or supporting documents to prevent delays

To begin your search for your ideal chain-free new-build home, discover your nearest Bellway developments or find out about our Good to Go homes that are ready to move into. You can also learn more about the home-buying process on Your Nest, with our articles covering many aspects of the journey from a checklist for viewing a property to tips for decorating a new-build home when you finally have your keys.