Nearly six in 10 homebuyers report financial losses from the property-buying process
Homebuyers are frequently falling victim to gazumping due to lengthy property chains and delays in obtaining mortgages, according to new research from Market Financial Solutions (MFS).
An independent survey commissioned by the specialist lender surveyed 1,183 people who have bought property in England and Wales since 2014. The findings revealed that 37% had been gazumped during the process, with 59% of those attributing it to delays or long waiting times for mortgage approval.
In addition, 58% of respondents experienced gazumping on a property they wanted to purchase as they were stuck waiting for a buyer for their own property. Overall, 54% cited being stuck in a long property chain as a significant factor in being gazumped.
The survey also highlighted the financial and emotional toll on buyers. Among those gazumped, 62% missed out on their dream home, and 61% had to settle for a property they liked less. Moreover, 59% reported financial losses from the property-buying process, including survey costs and legal fees.
“Much is made about the root causes of gazumping, namely the fierce competition there is in the market due to an imbalance between supply and demand,” Paresh Raja (pictured), chief executive of Market Financial Solutions. “But in looking for the cause, we often overlook the emotional and financial impact that gazumping can inflict.
“Throughout the purchasing journey, prospective buyers often develop a strong attachment to a property, making the sudden collapse of a deal particularly difficult to stomach. On top of that, thousands of pounds are typically lost when a deal falls through, rubbing salt in the wound.
“Clearly, with lengthy property chains and mortgage delays cited as key factors behind people being gazumped, there are lessons for lenders, brokers and agents. All parties must work together to reduce the risk of delays and ensure that buyers can secure finance at pace. In turn, this will help close the window of opportunity for gazumping tactics and minimise the emotional and financial impact on would-be buyers.”
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