Two-thirds of London homebuyers fall prey to gazumping

24 November 2018 | 0 Comments

A whopping 66% of buyers in the capital were victims of the frustrating practice last year, which sees accepted offers outbid at the last minute

According to a new survey by online estate agency Emoov, as many as two in three Londoners still face being gazumped – where sellers accept an offer on a property, only to later reject it for a higher bid.

66% of buyers in the capital reported falling foul of the practice, nearly double the 35% of incidences recorded last year.

READ MORE: UK property market - more a "softening" than a crash

Regional drops

However, the good news is, that while the trend persists in London, elsewhere it appears to be waning. The survey of 1,000 homeowners found that gazumping across the UK is down 11% from 2017, with 25% experiencing the nuisance tactic, compared with 36% last year.

Interestingly, though London has the highest number of people who say they have been gazumped, the southeast, home to many of London’s traditional commuter towns, sees the lowest level of gazumping at 7%.

The practice also seems more likely to affect to first-time buyers, with 58% of homeowners between the ages of 25 and 34 saying they'd been on the receiving end. 

Property demand

Russell Quirk, Founder and CEO of Emoov, says the reduction in gazumping can be put down to affordability issues and lower buyer demand.

He said: “As a result, this reduction in competition is seeing fewer homeowners receive and opt for a last minute higher offer, at the expense of their existing buyer.

"That said, the art of gazumping is still very prevalent across the capital where demand remains strong in numerous locations, despite the wider topline figures showing an overall slowdown".

Here's how each region compares when it comes to gazumping

Region  Percentage of people gazumped
London 66%
Northeast     22%
Northwest 21%
Midlands 21%
Southwest 19%
East Anglia 15%
Northern Ireland 15%
Yorkshire 10%
Wales 10%
Scotland 8%
Southeast 7%

READ MORE: First-time buyers - how to buy a home in less than five years

 Photo: Willy Barton/Shutterstock


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