John Elliott, Managing Director of Millwood Designer Homes discusses the rise of gazumping in the UK and how to avoid it by buying new:
Following the disappointing result of the General Election, the UK is currently in a state of uncertainty. Whilst I believe for the housing industry it should be business as usual, there has been a significant rise in gazumping, with new research from Countrywide estate agency revealing that gazumping is at a six-year high. The gazumping rates came out even higher in the latest survey by emoov.co.uk, which found 36% of respondents had been gazumped on a recent purchase, up from just 13% a year ago.
Unfortunately ‘gazumping’ or outbidding a competitor on a property during the buying process is still legal and happens when the seller has accepted an offer, only to pull out at a later date because they have received a better offer. Specifically in the east of England, 5.7% of offers accepted by a seller in 2017 have subsequently been rejected in favour of a higher one from a different buyer, 30 or more days later.
When it comes to buying or selling a property, as the chain forms, the chances of a delayed or broken link unfortunately creates uncertainty and stress for homebuyers. For those wanting to avoid gazumping and the stress that comes with it when purchasing a new home, looking at a new build property is an extremely wise move. One of the biggest advantages to buying new is that you are buying directly from the housebuilder instead of any previous owners, meaning gazumping is not an issue.
At Millwood, we work hard to ensure the home-buying and selling process is as smooth as possible. Schemes such as the government’s Help to Buy and our own Moving Made Easy are available at a selection of our current developments are very popular with buyers, helping them move quickly and easily.
With the Help to Buy scheme available at sites such as Woodlands View, those looking for a beautiful new home in Hastings can buy with a deposit of just 5%. The Government will then provide an equity loan of up to 20% of the property’s value, interest free for the first five years, with the buyer raising a mortgage for the remaining 75%.
The Moving Made Easy scheme is hassle-free, cost effective and assists with the moving house process, from start to finish. Services include assisted sale which ensures buying and moving is made simple and benefits include less risk of a property chain collapsing.
For those who still have a house to sell, it’s worth checking if Part-Exchange is available as this can also be a viable solution. Part Exchange enables homeowners to trade in their home as part payment for a new build property, removing the stress of selling their old home.