1 in 10 transactions subject to gazumping
Recent research has indicated that over 1 in 10 property transactions have been affected by gazumping this year.
According to TwentyCi data recorded from January to August, 12% of property transactions in England and Wales have been gazumped. The property data company define this as where a property has been sold at a price at least 1% higher than that which was agreed at the point of it being sold subject to contract.
Whilst at 7% Wales saw the lowest level of gazumping, Greater London topped the table with 14.46% of transactions involving a property being sold for over the agreed price.
The research also looked into the growth of gazumping and the trends observed across the UK during the last three quarters.
It found that in general, the rate of gazumping rose throughout the year, growing by two percentage points to 13% in the most recent quarter.
The most significant movement occurred in the west midlands, with the proportion of gazumped transactions up from 10% in Q1 to 16% in Q3.
The results of the research follow the government’s recent ‘Call for Evidence’ which questioned whether there was a need to build commitment levels between the buyer and seller.
In their response, consumer group HomeOwners Alliance called for ‘reservation agreements’ to be put in place, stating that these would significantly reduce the number of fall-throughs.