New report reveals gazumping on the rise – but will Ministers act?
CEO of lender MFS, says its research report reveals both a rise in gazumping but also continuing support among buyers to outlaw it – as it is already in Scotland.
The widespread use of gazumping within the sales market in England and Wales has been revealed with nearly 80% of those quizzed by a new survey saying it should be outlawed.
The poll by specialist lender MFS, which is the fourth time the firm has completed the research since 2016, highlights how the practice remains a huge problem for many buyers with 36% of the 1,100 home buyers quizzed reporting being gazumped.
This is an increase of 6% since MFS completed its previous survey two years ago.
Recently, the Levelling Up, Housing and Communities Committee launched an inquiry into improving homebuying and selling in England, which included an examination of the impact of gazumping or gazundering, and how they may be remedied.
A quarter of those polled by MFS said they had gazundered a vendor by dropping their offer at the last moment.
The most common reason why gazumping takes place is the jaw dropping length of time it takes to move from offer to exchange in England and Wales, and particularly the time it takes to get mortgage approval.
Also, the practice is most prevalent among young home movers with 61% of those aged 18-24 reporting being gazumped, but only 20% of over-55s.
“In the current market, it appears a ruthless precedent could be being established among youngsters,” the report says.
“While those between 18-24 years of age are the most likely to be gazumped, they’re also the likeliest cohort to do the gazumping.”
“Gazumping is still a thorn in the side of the English and Welsh property buyer,” says Paresh Raja (main image), CEO of MFS.
The gazumping conundrum shows few signs of slowing down or dissipating. Buyers are still keen for the state to act on this. Fortunately, it looks like the government is finally taking notice.”
Read the report in full (requires sign up)
