The amount of gazumping in the British housing market has fallen but London still sees the biggest amount of the practice
The amount of gazumping going on in the British housing market has fallen but London still sees the biggest amount of the frowned upon practice.
Gazumping, where a seller accepts a verbal offer on their property from one potential buyer, but then accepts a higher offer from someone else, fell by 11% so far in 2018 compared to last year with 25% of buyers in this position.
But in London some 66% of buyers have experienced gazumping, an increase of 31% year on year, according to the research from estate agents Emoov.
Elsewhere the number is much smaller with 22% in the North East and 21% in the Midlands and the North West of England, and 19% in the South West.
Some 15% in East Anglia and Northern Ireland were affected by gazumping, 10% in both Yorkshire and Wales, just 8% in Scotland and 7% in the South East of England.
The research also found that first time buyers are most likely to be gazumped with 58% of 25 to 34 year olds saying they have experienced it and 41% of 35 to 44 year olds being gazumped during a property purchase.
Although market conditions remain tough, the good news at least, is that gazumping has declined as a result, said Comment from Russell Quirk, Emoov chief executive officer.
Quirk said that while there are still a steady number of sales each month despite stock levels also remaining low, there isn’t the overwhelming buyer appetite that has been seen in previous years.
He said that as a result, this reduction in competition is seeing fewer home owners receive and opt for a last minute higher offer, at the expense of their existing buyer. But gazumping is still very prevalent across London where demand remains strong in numerous locations, despite the wider figures showing an overall slowdown.