A study from property data company TwentyCi has claimed that 12% of property transactions in England and Wales have been subject to gazumping this year.
According to TwentyCi, a property is defined as being gazumped where it has sold at a higher price – 1% or more – than that which was agreed at the point of Sold Subject to Contract (SSTC). Its study covered the period from January to August this year.
TwentyCi claims that the Greater London area has seen the greatest level of gazumping, with 14.46% of property transactions being purchased at a price greater than the agreed price at the point of being SSTC.
The west midlands comes in second with 13.97% of transacted properties being gazumped, exceeding the rate of gazumping in inner London (12.1%).
The south-west and Wales have seen the lowest rates of properties being gazumped at 9% and 7% respectively.
In addition to looking at the percentage of gazumped properties, TwentyCi monitored the levels of gazumping throughout the first three quarters of 2017 to identify which regions had seen the largest movements in the practice.
Across England and Wales overall, there has been a general increase in the rate of gazumping as the year has progressed, rising from 10% of properties in Q1 to 13% in Q3.
The west midlands has seen the largest growth in the presence of gazumps across the year, with 10% of transacted properties experiencing a forced price increase in Q1, increasing to 15% in Q2 and continuing upwards to 16% in Q3.
The south-west has also seen high growth of gazumping, rising from 7% in Q1 to 11% in Q3.
The data used by TwentyCi for this analysis is said to have covered 99.6% of the UK home mover market.
While the Government’s new ‘call for evidence’ into the house buying and selling market specifically cites gazumping as a problem to be overcome, EYE has heard little to no anecdotal evidence as to the practice in many months.
What a load of rubbish. I’ve not directly had a gazumping issue in over 10 years, let alone 10% plus of my sales this year. Gazumping is one of those problems, in my opinion, that en mass really doesnt exist.
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Not sure what data they were looking at in London, but this could not be further from the market today.
Also, I would suggest that they are not deducting figures that come back to market and are guininely sold for more the second time around.
Incorrect data like this further confuses government who is unable to make the right decision with the right data, so please stop dishing out this rubbish.
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Both these comments are absolutely spot on.
Seriously TwentyCI – who on earth thought that a change in sales price equals gazumping?
We are getting extremely tired of all these “experts” who are not actually doing the work trying to give “advice” to the government.
https://thepartnershiplimited.com/new-government-initiative-trying-solve-wrong-problem/
Leave the comments to those that can and do rather than those that *think* they can and rarely “do”.
Next they’ll be claiming that estate agents that use panel managers to exploit desperate lawyers have better success rates in transactions than those who use preferred lawyers!
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What a load of nonsense. GAZUNDERING is a far bigger problem and needs outlawing.
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FS54
Pleased to say that I agree with you – which doesn’t happen often (if at all!) – on your first sentence at least.
As to part #2 of your post – only ever had it tried once in 25 years in Agency and it was very quickly and effectively dealt with… by telling the purchaser to exchange at the agreed price – or Foxtrot Oscar.
Maybe the experiences of others are different – the floor is open to them.
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I’ve had it 3 times in the last 6 months and not a single case had any merit whatsoever apart from the unscrupulous buyer and their equally dishonest conveyancers trying to scam money from genuine vendors. I even had a solicitor turn up to a house pretending to be an electrician and plumber all rolled into one, driving a Range Rover with no testing equipment whatsoever. This “expert” subsequently condemned the plumbing and electrics and demanded a reduction. When I pointed out the error of his ways the deal was miraculously back on at the agreed price. Some communities use the tactic as a matter of course
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So you are reporting this dishonest “professional” to the SRA and the IEE/NJCEIC, I take it?
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Gazumping still happens. It’s something I’ve experienced personally within the last couple months after having my offer accepted following a best and final bid process.
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What was the nature of the sale iProp64?
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