Gazumping costing UK £290m a year

Many English homebuyers are facing large gazumping costs, claims a new study from Fool.co.uk.

A survey conducted by the personal finance website claims that around £290 million a year is spent on unnecessary surveys and solicitor costs prior to being gazumped. There are concerns that this could increase dramatically as the market becomes even tougher.

Gazumping involves a seller accepting an offer from one interested party but later on agreeing to a higher offer from another buyer.

Fool.co.uk concluded that around 12 per cent of buyers have been gazumped in the past 12 months. However, a surprisingly 22 per cent admitted that they would have considered gazumping other potential buyers if it meant securing their dream property.

David Kuo, head of personal finance at Fool.co.uk, said: "For many people, the purchase of a house will probably be the biggest single acquisition they will ever make. It can take months of searching to find the ideal home and anything that dashes the dream can be emotionally draining, especially if it is the result of being gazumped."

He added that both emotions and finances can be affected by gazumping but it is never "possible to eliminate the risk completely."

19/09/2007 15:17:33