You are here: Home - Mortgages - First Time Buyer - News -

Sheffield buyers beware! It’s England’s gazumping hotspot

Written by: Christina Hoghton
Find out where else in the country you need to be on your guard against better offers

There are a few things as exciting as having your offer accepted on a new home, but you are still far from getting the keys at that stage.

In fact, new research from property guru Phil Spencer’s website, Move iQ, has found that the dreaded practice of gazumping is alive and well in the property market, leaving wannabe buyers disappointed and potentially out of pocket.

The research, conducted with PropTech firm Gazeal, found the worst area for gazumping is Sheffield. Over a third (35 per cent) of would-be buyers in the South Yorkshire city are gazumped, more than double the average for England and Wales (16 per cent).

What is gazumping?

It’s where a seller who has agreed a price with a buyer goes back on the deal after receiving a higher offer from someone else.

It often happens in an overheating property market, where intense competition among buyers leads to bidding wars and the temptation for sellers to leave would-be buyers in the lurch.

That’s the case in Sheffield, according to Move iQ, where average property prices rose by 7 per cent in the 12 months to the end of January, and in Manchester, where a quarter (25 per cent) of buyers suffered being gazumping as prices rose by 7.6% over the same period.

Phil Spencer, TV property expert and co-founder of Move iQ, said: “For anyone who thought gazumping vanished with the runaway price rises of a few years ago, our findings will come as a reality check. Gazumping is alive and well, and still causing heartache for tens of thousands of buyers across England and Wales.

“The culprit is the legal blind spot in the way homes are bought and sold in England and Wales. A legal system that lets sellers leave buyers high and dry weeks, or even months, after accepting their offer is clearly not fit for purpose.”

Clarity and certainty

Move iQ has now teamed up with Gazeal, a PropTech company that enables sellers and buyers to agree a deal that has legal force right from the start.

Duncan Samuel, managing director of Gazeal, added: “Gazeal has a clear goal – to bring greater clarity, certainty and speed to the legal part of buying a home.

“Above all, we’ve taken the nonsense out of the exchange process. All the checks and documents are processed upfront, which speeds up the process. Both seller and buyer can choose to be legally bound to the deal, so no one can walk away. No time wasters, no stress, no surprises.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Coronavirus and your finances: what help can you get?

News and updates on everything to do with coronavirus and your personal finances.

Everything you need to know about being furloughed

If you’ve been ‘furloughed’ by your company, here’s what it means…

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
Garden theft on the rise: how to outsmart the burglars

High tech alarms and fancy video doorbells may stop burglars breaking into your home – but what about protecting your...