Dubbed "the property curse of the 1980s", gazumping is
becoming commonplace again. We recently conducted a survey with
YouGov of 1,300 British homeowners and found that one in ten people
have been gazumped as a result of a sneaky move to undercut would-be
As people clamour to get on the property ladder, "2.57 million
Brits [are] losing out on a property purchase because another buyer
was able to present a more attractive offer," according to
Market Financial Solutions.
And it's not just the disappointment of losing your new home, but
also losing money after you've got the ball rolling on legal and
financial matters. Our research found that 53% of those gazumped had
lost money, on top of the property they had hoped to purchase, with
14% of those people losing more than £1,000 to intermediaries
including solicitors and surveyors.
With an average processing time of six weeks for a mortgage from a
traditional high-street lender, this can delay the purchase process
while solicitors are already carrying out searches. If the buyers
have not requested for the property to be taken off the market
during this time, it leaves them open to gazumping should another
buyer out-bid them.
Shockingly, property buyers who get gazumped lose an average of
£2,899 in fees, which equated to more than £4.4 billion
being lost in the UK in the last year, according to Which?. This is
due to the cost of local searches carried out by conveyancers, which
cost between £250 and £300, in addition to legal fees
charged by the conveyancers (varies from practice to practice) and
the valuation fee charged by mortgage lender for assessing the
property, which is between £150 and £1,500.
See our Gazumping infographic