Homebuyers are being gazumped due to lengthy property chains and delays in getting a mortgage, research from Market Financial Solutions (MFS) reveals.
MFS’ independent survey of 1,183 people who have bought a property in England and Wales since 2014 found 37% had been gazumped during the process.
Of those, 59% said they were gazumped partly due to delays or long waiting times in getting a mortgage.
A further 58% said they were gazumped on a property they wanted to purchase as they were stuck waiting for a buyer for their property.
Just over half, 54%, of those who have been gazumped cited being caught in a long property chain as a significant factor.
Meanwhile, the survey also revealed that 62% of people said they missed out on their dream home while 61% were forced to buy a property that they liked less.
In addition, a majority (59%) of people lost money they had invested in the property-buying process such as survey costs and legal fees.
MFS chief executive officer Paresh Raja comments: “Much is made about the root causes of gazumping, namely the fierce competition there is in the market due to an imbalance between supply and demand. But in looking for the cause, we often overlook the emotional and financial impact that gazumping can inflict.”
“Throughout the purchasing journey, prospective buyers often develop a strong attachment to a property, making the sudden collapse of a deal particularly difficult to stomach. On top of that, thousands of pounds are typically lost when a deal falls through, rubbing salt in the wound.
“Clearly, with lengthy property chains and mortgage delays cited as key factors behind people being gazumped, there are lessons for lenders, brokers and agents. All parties must work together to reduce the risk of delays and ensure that buyers can secure finance at pace.”
