Gazumping continues to rise, homebuyers call for a ban

License: C-23139

Gazumping continues to rise, homebuyers call for a ban

2024-05-01 Temas Generales 0

More than three quarters of homeowners surveyed believe that gazumping should be banned in England and Wales, new research from Market Financial Solutions (MFS) revealed.

The specialist lender commissioned an independent survey of 1,183 people who have bought a property in England and Wales since 2014.

It found that 38% were gazumped by a rival bidder while trying to buy a property in the last decade – an increase of 7% since MFS last ran this survey in Q2 2022.

Four fifths (78%) of respondents are in favour of the government introducing laws to ban the practice of gazumping in England and Wales, as the Scottish government has done.

However, almost one in three (29%) homebuyers admitted to gazumping a rival buyer by coming in with a higher bid on a property for which another offer has already been accepted, and half (46%) would consider doing so in the future if it meant getting the property they wanted.

MFS’s research also found that three quarters (73%) of people believe gazumping and gazundering tactics have become more common place in recent years due to high demand and limited supply. A further 67% say that the property market is too competitive.

In addition, the survey revealed that 26% of homebuyers have gazundered a seller by lowering their offer late in the process.

Paresh Raja, CEO of MFS, said: “For all the challenges that both buyers and sellers have faced in recent years, there’s no escaping the fact that the property market remains incredibly competitive. Our research underlines one of the by-products of this, with buyers often having to resort to questionable tactics like gazumping to secure the property they want.

“As the government’s Levelling Up Committee launches an inquiry into improving homebuying and selling in England, it’s important they take heed of this data. Not only is gazumping becoming more prevalent, but there is huge demand for laws to be changed to tackle the issue.

“Clearly, the underlying, persistent imbalance between supply and demand is a key factor in this problem. It’s more important than ever, therefore, that lenders and brokers work together to provide the tailored financial solutions that homebuyers need to navigate the challenges of today’s market, with speed remaining a vital quality among lenders – this closes the window of opportunity for a buyer to be gazumped.”