Happy Customers

"We wanted to up-size to make room for our growing family, but needed to sell our flat first and National Homebuyers enabled us to do this quickly. They simplified the whole process of selling and enabled us to purchase our dream property! UK Government plans to ban ‘Gazumping’"

Mr & Mrs H, Space

"After inheriting a property from my late Mother, I approached National Homebuyers. I had been caring for my Mother for a number of years and the thought of selling the property using an Estate Agent was a hassle that I did not feel able to cope with. The sale of the property was a difficult […]"

Mrs J, Lydney, Gloucestershire

UK Government plans to ban ‘Gazumping’

Gazumping in the UK housing market could become a thing of the past. The UK Government are considering banning “gazumping” by bringing forward the point at which the sale of a house becomes legal.

Gazumping occurs when a property seller accepts an offer on their property from one potential buyer, but then accepts a higher offer from someone else.

According to the Daily Telegraph, policymakers at the Department for Business Innovation and Skills (BIS) held a meeting with officials from the National Association of Estate Agents in which they laid out plans to put an end to the practice of gazumping in the UK.

The aim will be to protect thousands of home buyers by cracking down on those who pull out of buying or selling a house at the last minute.

The Government plans to introduce a system where the sale of a property becomes legally binding at the point where an offer is accepted by the property seller, preventing the buyer from being outbid at a later date. The new system also means neither party can withdraw without being liable for the losses of the other party. This type of system already exists in Scotland and in Europe.

This new system, if it was to be introduced, could prevent millions of house sales falling through because at the moment according to the Land Registry around 18% (which is 200,000 transactions) collapse every year. One of the main causes of this is the practice of gazumping.

Mark Hayward, managing director at the National Association of Estate Agents, said: “The English system for buying and selling property dates back to the 1920s and has not been updated for nearly 100 years. It is an archaic system which doesn’t allow for modern technology. It needs updating to allow for as much work to be done before the point of offer as possible.”

While these plans to ban ‘gazumping’ using a Scottish-style system will favour UK homebuyers, it could ultimately put off property sellers and prevent them from selling their homes.

SELL YOUR HOUSE FAST FOR CASH – GET AN OFFER NOW >

Homebuyer Man is the public face of National Homebuyers’ expert property team, keeping up to date with all the latest industry news, property trends and market information.

Homebuyer Man’s experience in the property market is unmatched, providing expert information and exclusive insight on all things property, whether that be mortgage advice or drilling down into the best times to buy and sell in different areas across the UK. With more than 15 years’ experience, there isn’t much Homebuyer Man doesn’t know when it comes to the property market.

I’m a regular face on some of the country’s most popular TV channels including ITV, E4 and Nickelodeon.

What is my house worth?
Movers and shakers: The geographical lottery of house values