Posted on Friday January 10, 2020
According to recent research, 80 per cent of homeowners want the Government to create legislation to clamp down on gazundering and gazumping.
The data was collated by Market Financial Solutions, which found that 31 per cent of homeowners have experienced a home sale falling through because of either gazundering or gazumping in the last 10 years.
Gazumping is when another buyer makes a higher offer on the house you are in the process of buying and has that offer accepted, therefore pushing you out of the purchase.
Gazundering on the other hand is when a buyer lowers their offer near to completion. Many sellers, conscious that a refusal could collapse the sale are often pressured to accept the deal rather than start the sale process again.
The survey revealed that people find the current system causes a lack of trust in the home buying and selling market, with homebuyers feeling that a reduction in the amount of housing stock is causing intense competition in the residential housing market.
Two-thirds of homeowners feel anxious about the property market, feeling that it’s difficult to purchase a property, while 43 per cent state that they would be prepared to gazump an accepted offer if it would secure their desired new home.
Many experts feel that a lack of legislation is intensifying the issue, and people are now urging the Government to act and provide regulation to the marketplace to ensure that consumers are adequately protected in the home buying process.
Paresh Raja, Chief Executive of Market Financial Solutions, said: “With demand for UK property constantly high, the process of buying a home has become incredibly competitive. As a result, a significant number of UK homebuyers are losing out on deals at the critical closing stages.
“Not only is gazumping a cause for frustration and disappointment, (but) it also can incur significant costs to the prospective buyer.”
For more information or advice on the issues covered in this article, please contact Rozia Ali.