Gazumping is back, say some conveyancers.
The UK’s largest conveyancing firm has confirmed a rise in gazumping, saying that just over a quarter of conveyancers have seen instances where a new buyer gazumped the original purchaser during June, July and August.
The firm also says that 36% of conveyancers have seen an increase in the number of sellers pulling out of transactions, while a further 62% of conveyancers have seen a rise in the number of sellers asking for more money during a transaction.
The firm also said that nearly half (47%) of home buyers who have used the Government’s Help to Buy scheme have needed a gifted deposit. This means that even with direct intervention from the Government through its equity loan and mortgage guarantee schemes, the cost of property is still too high. For many people, the dream of owning a property without financial assistance from the bank of mum and dad is just unattainable.
Estimates suggest that over 16,000 first-time buyers will make purchases using gifted deposits this year. The average UK property that was bought with a mortgage in August stood at £264,250.
Separately, another report said that annual house price inflation across 20 UK cities is running at an average of 8.3%.and that house prices in the cities are up by 19.9% since their 2007 peak.
However, this average figure disguises huge variations, including London, Cambridge and Oxford, where house prices have gone up 41.6%, 43.6% and 34.4% respectively since 2007.These contrast with Belfast, Liverpool and Newcastle, where prices compared with peak are down 46.8%, 13.4% and 7.5%. On an annual basis, all 20 cities have seen house price inflation, apart from Aberdeen where prices have slipped 2%.
As established and professional Estate Agents, Martyn R Cox & Co does not encourage gazumping or gazundering, but the client has the last word and nothing is ever settled until exchange of contracts. We promote fairness and hope that a moral attitude is adopted by all parties.
Figures and statistics courtesy of Hometrack and Myhomemove