London may be top of the pile when it comes to house prices, but the latest research from eMoov shows Brighton is the UK’s gazumping capital.
As if getting a foot on the property ladder wasn’t already hard enough for some, the danger of being gazumped is now the reality for property buyers.
On average across the UK a fifth of the nation (22 per cent) have experienced the turmoil of being gazumped. A stomach churning case of so near yet so far, it can leave prospective buyers out of pocket and back to square one in the buying process.
Popular property hotspot Brighton topped the pole with 34.9 per cent of people having been previously gazumped when buying a property.
It is little surprise for buyers in the fast rising London market, gazumping is over the national average – 31.9 per cent in the capital have come within touching distance of a purchase, before it was snatched from their grasp. The tactic of sealed bidding, particularly rife in the capital, provides the ideal environment for potential gazumpers. Having an offer rejected, only to return at a later date to outbid the original buyer.
Outside of the South East the average drops from 22 per cent to 18 per cent. Birmingham figures show 27 per cent of property buyers in the area have been gazumped with Sheffield at 22 per cent, Bristol at 21 per cent, Leeds and Nottingham at 20 per cent.
Although gazumping is not a new concept it has become a more regular occurrence across the country. The research also found that the higher the price of the property, the more likely you are to be gazumped. Of those that had been previously gazumped 27 per cent were over properties of £500,000 or above. This dropped to 25 per cent for properties valued between £200,000 and £500,000 and a further 6 per cent for properties under £200,000.
Russell Quirk, chief executive of eMoov.co.uk, says gazumping is unfortunately a part of the current structure of purchasing property.
“Buyers that have displayed honest interest in a property [are] let down by owners with pound signs in their eyes, often encouraged by [a] traditional estate agent looking to increase his fee percentage. “
Liverpool was the least affected area of England for gazumping at just 13 per cent, however this doesn’t necessarily put an end to unethical behaviour during the buying process.
Quirk adds: “If these markets cool off too much, we could see gazundering coming back in. This is a tactic in areas with little demand where the buyer calls up just before the exchange of contracts and demands to pay less.”
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