Homeowners ‘losing millions’ to gazumping

UK property buyers are losing up to £290 million each year through today’s ruthless house buying tactics, new figures have claimed.

Some 73 per cent homebuyers believe that gazumping, where sellers pull out after the buyer has forked out financially on particulars such as surveys, searches and lawyer’s fees, should be made illegal, a survey by Fool.co.uk has found.

The personal finance website’s study also revealed that 28 per cent of gazumping victims were left “seriously out of pocket”, while 11 per cent of homebuyers believe it is a necessary evil in the task of finding an ideal property.

Fool.co.uk has advised consumers to avoid the phenomena by taking measures such as getting their finances in place early, establishing a bond with the seller, and keeping the seller’s estate agent informed at all times about the progress of the purchase.

“While competition can often draw out the best price for a product, it can also bring out the worst in people,” the website’s head of personal finance David Kuo said.

However, a recent Building Societies Association report found that 71 per cent of current homebuyers accept that property prices could fall this year.

Tags: fool, survey, gazumping, study, place, GBP, necessary evil