First-time buyers demand an end to gazumping

Over 73% of first-time buyers believe that once an offer has been accepted on a property it should be made legally binding, according to a survey conducted by property portal What House?

In March there were just 108,000 homes for sale across London, compared with 225, 000 in 2003, which is undoubtedly contributing to the likelihood of gazumping. While the survey shows that first-time buyers are still concerned about rising house prices and with buy-to-let investors dominating the market, gazumping is the hot top.

It’s not just Londoners that have strong opinions on gazumping. None of the respondents from the North West agreed that a seller should be free to accept a higher offer, and around 80% of those surveyed in the same area agreed that once an offer had been accepted it should be made legally binding.

Sarah Speight, editor of What House? comments, ‘‘it’s no surprise that feelings regarding gazumping are strong. Last month just 12.3% of properties bought in the UK were bought by first-time buyers. From the results of our survey it would be fair to assume that London’s first-time buyers are feeling the affects of gazumping the most. We know that 45% of new-build properties in London are being bought by buy-to-let investors, and estate agents say that between 80 and 100 buyers are chasing each property in some areas of London.”

Sarah continues, ‘‘If first-time buyers are having difficulty entering the housing market because they are being gazumped by investors or wealthier buyers, then as an industry I think we really need to campaign to make gazumping illegal in this country.’’