Everything you need to know about property chains in 2025

Property sales and property purchases are one of the most stressful experiences a person will live through. With so much going on, and so many new terms to learn, it can be easy to feel out of your depth, especially when it comes to dealing with property chains.

A property chain occurs when buyers and sellers are all reliant on the sale of their homes in order to purchase their next one. If you are a first-time buyer, or a buyer who is living in rented accommodation and has no other property to sell, you will be the beginning of the chain. If you only need to sell, then you will be at the end of your chain. If you are buying and selling, you will find yourself in the middle link in the chain.

In this article we will be looking at how property chains work, how you can help keep your chain intact, and how you can sell even if your property chain breaks!

What is a property chain?

A property chain is where there is a group of buyers and sellers, all interconnected like a chain. Only around 30% of all house sales are actually involved in a property chain, but they are still very common. Anyone that wants to buy and sell a house at the same time, is considered to be in a property chain.

If you are involved in a property chain, you may have one or multiple house transactions, below you or above you. 

How do property chains work?

Property chains are usually a sequence of property transactions which all need to happen either at the same time, or very close together — which increases the risk of a house sale falling through tenfold. If one property cannot complete on time, this may risk the other house sales, as they are all dependent on each other.

A typical property chain looks like this:

• First-time buyer - At the start of the chain, the first-time buyer does not need to sell in order to buy a new property.

• Homeowner - The homeowner is selling their home to a first-time buyer and purchasing their new property from the retiree.

• Retiree - Selling their home to the homeowner and moving in with their own family.

However, property chains can have far more than three properties involved in the transaction. If there are more properties involved, the risk of failure dramatically increases.

Most estate agents will let you know how many properties are involved in the chain. Once a buyer enters the chain, who doesn’t need to sell their own home to finance the deal, or a seller doesn’t need to buy a new property, the chain will become ‘closed’. 

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

It is standard industry practice to buy and sell a house at the same time, especially if you are already in the property ladder — but it doesn’t mean that it's not complicated. 

Most buyers that already have a house, will need the house sale to finance their next purchase, whether that’s to downsize or upsize. If the seller of the next house also needs to buy a house, then a property chain will form.

For every additional property sale in a property chain, the risk of your sale falling through will increase by around 15% due to interdependency & financing issues – which is why buying and selling at the same time can be a complicated process.

Is being chain free a good thing?

Over the last couple of years, there has been a dramatic decrease in property transactions being ‘chain free’. In 2022, Today’s Conveyancer reported that 73% of buyers had bought their house in a chain-free transaction, which had increased from 69% in 2021. But, in 2024, Zoopla reported that only 32% of homes currently for sale are being marketed as chain free — a difference of 41%.

The decline in chain free homes shows growing competition for these properties, which are often favoured by first time buyers or cash buyers. Meanwhile, the rise in property chain transactions reflects an increasing number of homeowners using the equity in their current homes to fund their next purchase. 

This surge in property chains shows greater financial confidence and market liquidity, as more people are able to access and use their home equity effectively.

What does no upward chain mean?

Having no upward chain is the same as having no onward chain, and it effectively means that the seller is not reliant on the sale of their current property in order 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.

Why do people sell in a chain?

The number one reason people sell in a chain is because they need the sale to finance their next purchase. This is especially true when people are looking to buy a larger or different type of property and can’t afford to buy their new home without the proceeds from selling their existing one.

For most people, selling in a chain is the most practical way to buy and sell a home, as it allows them to access a wider pool of potential buyers.

Can a property chain collapse?

Yes, they can! Property chains can collapse, as until the contracts are exchanged, the sale is not legally binding. Property chains break for a variety of reasons, but 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 a chain collapses after exchange?

If you are part of a broken property chain that has collapsed after the exchange, it is important not to panic. Whilst it is far from ideal, you will still be able to save your sale. As we have previously mentioned, if the buyer pulls out before the exchange of contracts, then no laws have been broken. But if they pull out after the exchange, then they are liable for damages. You would be able to take the buyer to court and gain compensation to put towards a new house.

You could also talk with your estate agent and find out the reasons for your buyer pulling out. It may be a case of the buyer feeling the home needs improvements or other small fixes that can save your sale and get your sale back on track.

If your buyer is pulling out at the last minute because they can no longer afford the property or because they are trying to gazunder you, you could offer to lower the price or open negotiations if you really want to save the sale. Or you could sell to a cash buyer, who will be able to buy your property in a time scale that suits you and get your sale back on track.

What can I do if my chain collapses?

If your chain collapses, it is important to remain calm. Whilst it can feel like the end of the world, you still have options. As we have mentioned above, should your seller pull out after the exchange of contracts, you can take them to court as they are in breach of their contract, but if they pull out before the exchange of contracts, it can leave you feeling panicked and trapped.

The first thing you should do is get in touch with your estate agent. If your seller is pulling out due to poor survey results, or because they believe the property is no longer worth what they were originally going to pay, your estate agent will be able to give you the reasons why, help you find a solution, and maybe even open the lines to negotiation.

If your buyer is set on pulling out of the deal and you are dependent on the sale to go through in order to purchase your next property, then a cash-buying company could be the way forward. Cash buyers will purchase your property for a cash sum, in a time frame that suits you, allowing you to purchase the home of your dreams, without being caught up in the chain collapse.

You could also look at taking out a bridging loan in order to help you afford your current home as well as your new home. However, whilst these can help bridge the gap between the two houses, they are often very expensive.

How can I keep a house chain intact?

Stopping a property chain from collapsing is not always possible, however, there are steps you can take that will help you to keep your chain intact and reduce the risk of your sale falling through:

• Choosing a buyer who is not part of a property chain

• Buying a new-build property

• Ensuring your mortgage offer is watertight and there have been no mistakes on the mortgage application

• Buying a property that is part of a short, upward chain or is chain-free

• Having the savings readily available to cover related costs such as stamp duty and solicitors fees

• Sell your property first and rent a property whilst you look for your next home

Can I speed up my house chain?

Whilst there are no guaranteed ways to speed up your property chain, there are steps you can take to help keep things on track and to move your sale along as quickly as possible. Simple things like being proactive in your sale can make a world of difference. Some of the best ways you can do this is by:

• Agreeing on a date for exchange and completion and aiming to stick to it

• Keeping a record of what's happening in the sale 

• Keeping the contact details of your estate agent, conveyancer, and other relevant parties to hand

• Signing and return any documentation as soon as you get them

• Getting your deposit ready early so that when exchange day comes around you are prepared

• Keeping relevant documentation to hand

Property chain guides

How do you escape a property chain?

Looking to sell your house so you can become a chain-free buyer? Or maybe your property chain has collapsed? Whatever your reasons are for selling, at The Property Buying Company, we are here to help.

As a genuine cash buyer, we can buy your property in a time scale that suits you! Whether you are selling in 3 months to become a chain-free buyer or as little as 7 days because of a chain break, we can buy your house as soon as you are ready to sell.

We are also proud members of the National Association of Property Buyers and The Property Ombudsman, as well as being rated excellent on Trustpilot.

We only require one quick viewing in order to confirm our initial cash offer is correct. After you have accepted our offer, that is the amount you will have in full in your bank.

With over 50 years of combined experience, we will buy any house, in any location, in any condition, taking the stress out of house sales. Plus, we cover all fees for you - even the legal ones!

Looking to escape the property chain? Then give us a call today or fill in our online valuation form to receive a no-obligation cash offer which we could have in your bank in as little as 7 days...