x
By using this website, you agree to our use of cookies to enhance your experience.
Graham Awards

TODAY'S OTHER NEWS

Revealed - the reasons why most fall throughs happen…

The leading reason for property sales falling through is gazumping, according to new research from Comparethemarket.

Over the past year, nearly two-fifths of buyers admitted they had successfully secured their home by outbidding another offer which had already been accepted.

Of those that tried to buy in the last year, but had their purchase fall through, gazumping is to blame for 38 per cent of failed transactions, and the research suggests this is becoming far more common in the housing market: three-quarters of prospective house-buyers would consider gazumping if their dream home was already under offer with another buyer.

Advertisement

The prospect of being gazumped is adding to stress for many homebuyers. Over four fifths of those who are waiting for their house purchase to complete, expressed concern that another potential buyer might come in and use the method of gazumping.

Another reason for transactions falling through is failure to meet the June 30 stamp duty deadline, accounting for 18 per cent of sales falling through. 

In addition to this, 15 per cent had a transaction fall through due to a member of the household being furloughed, leaving them ineligible for a mortgage.

Over the past year, 38 per cent of house-buyers paid above the asking price of the property in order to secure the deal, paying more than £16,000 on average.

Gazumping is currently legal in UK as the ‘agreement of purchase’ only becomes legally binding once contracts have been exchanged. If a buyer is gazumped after their initial offer had already been accepted, they may also lose out on fees already paid on surveys, solicitors, and obtaining a mortgage for the property.

The survey shows that 68 per cent of people who have bought or tried to buy a house in the last year, or are looking to, would support a law that made gazumping illegal, or ensured better protections are in place to prevent this happening.

icon

Please login to comment

MovePal MovePal MovePal
sign up