What Are Property Chains & How Do They Work?

If you’ve ever considered buying or selling property, or been remotely involved in the process, chances are you’ve come across the term “property chain”. 

But what are property chains, and how do they actually work?

This guide breaks down everything you need to know about property chains, including how they work, what happens when a chain breaks, what influences chain length, and how to manage being in a long chain. 

What is a Property Chain?

To put it simply, a property chain is a sequence of linked house purchases, where each transaction depends on the one before it. 

Property chains can vary in both length and complexity: 

• Simple chain: Typically involves 2-3 properties, and should complete within a few months.
• Longer chains: Involving 4+ properties, these chains could take around six months or more to finalise. 

In every chain, there’s a bottom and a top:

• Bottom of the chain: Typically involves a buyer who isn’t selling (for example, a first-time buyer or a property developer). They are the last to complete their purchase. 
• Top of the chain: A seller who’s not buying another property at the same time (again, could be a property developer or someone who owns multiple properties). They are the first to complete their sale.

What’s an Example of a Property Chain?

Let’s say we have this scenario:

• A first-time buyer is purchasing Mr Smith’s house.
• Mr Smith is buying Mrs Doe’s house.
• Mrs Doe is buying a probate property (a property being sold after the owner has passed away).

So, the chain looks like this:

If the probate process is delayed (which is common), the entire chain is held up, and the first-time buyer can’t move in until things are resolved at the top.

In short, a chain only moves as fast as its slowest link.

What is a Broken or Collapsed Property Chain?

This is when one (or more) sales within a property chain fall through, causing the entire chain to potentially collapse. 

In some cases, this means everybody starts from scratch – sellers look for new buyers, and buyers look for new properties. 

However, some broken chains can be salvaged – new buyers can be found if marketed quickly, especially if the house attracted strong interest before. 

Breaking a Property Chain on Purpose 

Oftentimes, buyers or sellers can deliberately break the chain in order to keep things moving.

For example, this could happen if a seller is desperate to sell their property – they might suggest moving in with family, into an Airbnb or a temporary rental accommodation. By doing this, they’re no longer dependent on buying their next property to complete the sale. 

This approach can help keep the rest of the chain intact and speed up the process for everyone else involved.

What Does ‘No Chain’ Mean in Property?

If there is no chain, or the property is described as “chain-free”, this means the sale doesn’t depend on any other linked property transactions. 

Take first-time buyers, for example. They aren’t selling – so, if they find a property where the seller isn’t buying another property at the same time, there would be no chain. 

“No chain” is the best case scenario you can find – it’s simply the buyer and the seller, which often leads to a smoother and faster completion for both parties.

What Does ‘No Onward Chain’ Mean in Property?

This means that the seller of the property isn’t relying on selling their current property to buy a new one. 

The seller may or may not be buying a new home, but in this scenario, it is not relevant to the chain, and can be completed separately. 

This is often the case when someone:

• Moves into rental accommodation
• Has already bought their next home
• Is selling an inherited property
• Owns multiple properties

Factors That Influence the Length of Property Chains

Buying and selling property can often depend on other people’s circumstances and decisions, just as much as your own. 

Some of the most common factors that influence property chains include:

• Number of buyers/sellers involved – This can determine whether there is no chain at all, or a long chain dependent on other people’s property sales. 
• Complexity of sales – If one of the houses being sold is through probate, for example, this could slow down the progress of the chain. 
• Mortgage issues – Mortgage offers are time-limited. If delays occur, buyers may need to reapply, sometimes with different rates.
• Survey results – Most buyers will have a full survey conducted on their property. If the survey uncovers problems, this can slow down the process, triggering queries and sometimes renegotiations.

Tips for Buying a House in a Property Chain

Found your dream home, but there’s just one catch – it comes with a long property chain? Don’t panic – here are a few tips to help you manage the process. 

Use an Estate Agent You Can Trust

Choosing the right estate agent in the Wirral (or your local area) makes a world of difference.

At Liam Gretton, we guide you through every step, keep you informed and offer honest advice – whether it’s about speeding things up or managing expectations. We’re here to support you, from first viewing to final key handover.

Instruct a Conveyancer Early

Conveyancing can be one of the longest stages of a property purchase.

By booking a conveyancer as quickly as possible, you can alleviate major holdups later on. 

You’d avoid any waiting lists, as well as have the opportunity to start resolving any potential problems that arise as part of the survey. 

Be Prompt on Your Side

Although there’s no magic way of speeding up a property chain, making sure you’ve done everything you can will ensure you’re not the one causing delays.

Have you responded to solicitor queries about the property you’re selling? Have you sent across all the relevant paperwork requested? Are there any unanswered emails to get back to?

If you’ve done everything you can, then solicitors on the other side can’t complain, and it puts more pressure on a slower party. 

Consider Breaking the Chain

If you’re in a hurry and need to buy or sell your property swiftly, you could consider breaking the chain. 

As a seller, you could move into rented accommodation or bunk in with family while your buyer can proceed to buy your property. 

You could still continue buying your next property, but you’d have the freedom to complete at your own pace (now from the bottom of a new chain). 

Moving Forward With Your Property Purchase

Property chains are part and parcel of the housing market, and they exist to help people move without having to sell and buy at separate times.

Although they can be long and complicated, without them, people would struggle to afford buying their next home without fully selling their current property first. 

Our advice? You’re always in good hands with a trusted estate agent, like Liam Gretton. Having an expert team on your side can make dealing with property chains more manageable, taking some of that pressure off. 

Looking for honest advice, expert support or a no-obligation valuation? Speak to a member of our friendly team at Liam Gretton today.