Londoners 3 times as likely to be 'gazumped' as any other British buyer

by Gary Whittaker

London-based property buyers have faced the most expensive prices found anywhere in the UK for some time now, with those looking to get themselves onto the ladder having to pay an average in excess of half a million pounds to do so. 

However, the difficulty in being able to afford a home in the capital is only getting worse at present, with new data showing that not only are prices high in the first place, but many people are being outbid after they have had their initial bid accepted. 

Gazumping is the practice of someone putting in a higher offer for a home than the seller has already accepted, essentially pushing the buyer out of the way in order to get themselves the property. Although it's a frowned upon practice that leads to inflated prices and competition, it's not actually illegal. practice of someone putting in a higher offer for a home than the seller has already accepted, essentially pushing the buyer out of the way in order to get themselves the property. Although it's a frowned upon practice that leads to inflated prices and competition, it's not actually illegal. 

And according to Market Financial Solutions, London buyers are three-times as likely to face this problem as anyone else in the UK, with buyers in the capital outbidding each other at the last minute in far more situations than anywhere else nationwide. 

Of those it surveyed, the company said that as many as 1.54 million buyers said they had been gazumped or lost out on their dream home when the sale fell through at a late stage. And of these cases, as many as 400,000 happened in London. 

In addition to these figures, more than a million people said they had bid on a home that someone else already thought they had bought in the past 12 months, with a similar number of buyers saying they intended to do the same this year. 

"Not only are people losing out on the fees they pay to solicitors and surveyors, but many buyers are also losing out on their dream home. Our research reveals that failure to access funds in a timely manner is one of the most common reasons for property purchases falling through," said Paresh Raja, MFS chief executive officer.

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30-January-17General Lettings News