Ban Gazumping – strong public support for new law

A survey of homebuyers, carried out on behalf on mortgage lender MFS, has found overwhelming support for a legal ban on gazumping.

MFS spoke with over 1,100 homeowners in England and Wales. A strong 78% wanting a ban on gazumping, with 38% having said they themselves were victim of it.

Ironically, 46% said that if it remained a legal action, they would consider gazumping a rival buyer in the future.

MFS’s research also found that three quarters (73%) of people believe gazumping and gazundering tactics have become more common place in recent years due to high demand and limited supply. A further 67% say that the property market is too competitive.

In addition, the survey revealed that 26% of homebuyers have gazundered a seller by lowering their offer late in the process.

The lender’s chief executive, Paresh Raja, says: 

“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. 

“Clearly, the underlying, persistent imbalance between supply and demand is a key factor in this problem.

“It’s more important than ever, therefore, that lenders and brokers work together to provide the tailored financial solutions that homebuyers need to navigate the challenges of today’s market, with speed remaining a vital quality among lenders – this closes the window of opportunity for a buyer to be gazumped.”

Kindly shared by Estate Agent Today