More than three quarters (77 per cent) of homebuyers are in favour of banning the practice of gazumping, research from Market Financial Solutions has revealed.
The research, which surveyed 1,183 people who have bought a property since 2014, found the disdain for the practice came from 37 per cent of people being gazumped by a rival bidder in the past decade.
This represents an increase of 7 per cent since MFS last ran a similar survey in Q2 2022.
Gazumping is when a property is sold to a second buyer for more money than has already been agreed with the first buyer.
MFS CEO, Paresh Raja, 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.”
Government intervention
The research, which was conducted in March of this year, found that a further 78 per cent of respondents are in favour of the government introducing laws to ban the practice of gazumping in England and Wales.
This would follow the Scottish government which has already banned the practice.
“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.”
However, 29 per cent of homeowners admitted to gazumping a rival buyer in the past by coming in with a higher bid on a property for which another offer has already been accepted.
Additionally, 46 per cent of respondents said they would consider gazumping in the future if it meant getting the property they wanted.
The research also revealed that the practice has become more common with 73 per cent of people believing that gazumping has become more common in recent years due to high demand and limited supply.
A further 67 per cent said that the property market is too competitive.
In addition, MFS revealed that 26 per cent of homebuyers have gazundered a seller by lowering their offer late in the process.
tom.dunstan@ft.com
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