The majority (80%) of all homeowners are looking for the Government to create legislation preventing gazumping and gazundering.
Almost a third (31%) of respondents had experienced the inconvenience and heartache of a home sale falling through because of gazumping or gazundering in the last ten years, according to research from Market Financial Solutions.
Respondents found the current system to be toxic, openly encouraging deceit and ultimately the root cause behind an inherent lack of consumer trust in the home buying and selling process.
Currently, home buyers feel as though reduced housing stock is promoting increased competition amongst buyers with 66% anxious that the present market makes buying a house overly difficult.
As competition in the buyers’ market increases, almost half (43%) of those surveyed would be prepared to gazump an accepted offer if it meant they could acquire their preferred property. A lack of regulation in place preventing this from happening is only exacerbating the problem.
Frustration also mounts with homeowners when they are left out of pocket following a transaction fall through. Over a third (39%) had found themselves paying fees to intermediaries even though the home sale collapsed.
With so much competition leading to mass uncertainty and reduced confidence in the property market, the Government has been tasked with providing a framework to create a rigid and transparent process which will protect consumers.
Paresh Raja, Chief Executive of MFS, 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, it also can incur significant costs to the prospective buyer.
“Avoiding complicated chains and having immediate access to finance can reduce the chances of a prospective buyer missing out on a purchase, but it’s clear from MFS’ research that further measures are needed to prevent gazumping in England and Wales.
“In the aftermath of the general election, let’s hope the elected government looks at measures to stamp out gazumping as a top priority.”
Will Government legislation preventing gazumping and gazundering help to reduce fall through rates and improve consumer confidence?
