Almost 1 in 3 UK Homeowners Have Been Gazumped – Experts Reveal What To Do If You’re In The Situation

A new study from estate agent comparison service GetAgent reveals that almost 1 in 3 (30%) of UK homebuyers have been gazumped before – when a seller breaks a verbal agreement on a sale because they’ve accepted a higher offer.

The research, which surveyed UK homeowners, revealed that 18 – 24 year olds were the age bracket which are most affected by gazumping, with 50% of homeowners aged up to 24 years old having been gazumped during the process of buying a house. In contrast, only 19% of homeowners aged 55+ years had experienced gazumping when buying a house.

Young house-buyers not only experience gazumping more frequently than their older peers, but they also admit to gazumping other people more too, with 35% of 18 -24 year olds confessing to having stolen another person’s dream house by presenting the house-seller with a higher offer. Only 4% of 55+ year olds claimed they had gazumped another house-buyer before.

Despite causing huge disruption, stress and financial loss to home-buyers who experience gazumping, the act is currently legal – as while an offer may have been accepted, the agreement between buyer and seller does not become legally binding until contracts have been exchanged. Victims of gazumping lose out on not only their dream home, but often significant amounts of money spent on surveys, mortgages and conveyancer fees – all processes which need to be paid for and completed ahead of contracts being exchanged.

GetAgent’s study revealed that over 3 in 4 people (77%) think that gazumping should be made illegal in the UK. Interestingly, although homebuyers aged 18 – 24 years old experience gazumping most often, only 61% expressed the desire for the act to be made illegal – versus 82% of those aged 55 years and older.

The UK’s Top 10 Gazumping Hotspots

As part of the research, GetAgent also revealed the gazumping hotspots of the UK, with the nation’s capital ranking as the number one hotspot – with 39% of homebuyers in London having been a victim of gazumping before. Norwich (36%) followed in second place, with 36% of homeowners having been gazumped, and only 7% of homeowners having been a ‘gazumper’ previously. Nottingham (35%), Manchester (33%) and Birmingham (31%) made up the top five hotspots.

Ranking at the bottom of the top ten were Wales’ capital Cardiff, and Leeds – where 1 in 4 (25%) homebuyers in each city have been a victim of gazumping before.

Colby Short, CEO and CoFounder of GetAgent, comments: “The consequences of gazumping can be truly devastating. Having to restart your property search after losing out on your dream home (and any money already spent on moving fees) can be really disheartening, and so it’s no wonder many don’t relax until those final contracts are signed.

While many think gazumping should be made illegal, there’s legally no consequences for outbidding a verbally accepted offer currently – however there are a few things you can do to protect yourself against gazumping:

Purchase Home Buyers Protection Insurance. Available to purchase via specialist providers, investing in insurance is an additional cost upfront, however it will allow you to claim back some of the money spent on the moving house process so far, should you find yourself having been gazumped.

Ask for the property to be taken off the market. If you’re concerned about getting gazumped, consider asking sellers to take the house off the market after your offer has been accepted. If you can show you’re committed to the process (by, for example, getting a survey completed as soon as possible after the accepted offer), then you may be more likely to get the house taken off the market – meaning there’s a significantly smaller chance of someone making a higher offer.

Move quickly. The sooner you can get contracts exchanged on your dream house, the less chance you have of being gazumped. Prepare in advance, and get all the necessary documents ready to speak to your conveyancer, so that you can move through the required checks as quickly as possible.
“If you take these precautions and still find yourself in the unfortunate situation of having been gazumped, then one option would be to review your financial situation – and see if you can gazump your gazumper. However, ensure that you are not overstretching yourself financially, as you could get gazumped again with a counter offer.

If you’re not in a position to outbid your gazumpers, then as a last resort try and make your case to the sellers – highlight everything which suggests you’d be a great buyer and express how much you love the house – as the outcome ultimately lies with the seller.”