Four in 10 have been gazumped in the last 10 years, although 30% admit they've done it to bag a home.
A new survey of homeowners in England and Wales has highlighted the prevalence of gazumping, said lender Market Financial Solutions (MFS).
What’s gazumping?
Gazumping is when a seller accepts an offer but, later in the process, accepts a higher offer from a different buyer. The original buyer loses the property, and they may have already spent money on costs such as conveyancing and a survey.
A significant 38% have been gazumped by a rival bidder while buying a property in the last 10 years.
Should gazumping be banned?
Over three-quarters (78%) of survey respondents said they are in favour of the Government introducing laws to ban the practice in England and Wales, as the Scottish Government has done.
Despite this, 46% admitted they would consider gazumping a rival buyer in the future.
And one in three (29%) have already done it, gazumping a rival buyer by coming in with a higher bid on a property for which another offer has already been accepted.
MFS’s research also found that three-quarters (73%) of people think gazumping and gazundering tactics have become more common due to high demand and limited supply.
Paresh Raja, CEO of MFS, said: “For all the challenges that both buyers and sellers have faced in recent years, there’s no escaping the fact that the property market remains incredibly competitive.
“Our research underlines one of the by-products of this, with buyers often having to resort to questionable tactics like gazumping to secure the property they want.
“As the Government’s Levelling Up Committee launches an inquiry into improving homebuying and selling in England, it’s important they take heed of this data. Not only is gazumping becoming more prevalent, but there is huge demand for laws to be changed to tackle the issue.”
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