Property experts have warned the Government that a ban on ‘gazumping’ property transactions will not affect bad practice in the property market, as it does not look at the wider picture as to why property transactions break down.
At the end of 2017, the Secretary of State for Communities and Local Government Sajid Javid announced plans to make purchasing and selling homes ‘cheaper, faster and less stressful’.
His proposals included clamping down on ‘gazumping’, which sees a buyer lose out on a property in the last minute, if a higher offer has been submitted.
People are becoming less concerned with legal fees and now with the concerns of gazumping during the purchase of a property.
Government proposals aim to outlaw this, although property experts have continued to warn that this is unlikely to prevent bad behaviour between sellers and buyers, as often, conveyancing transactions are plagued by an influx of offers from people that don’t actually have the means to purchase a property, or the right people in place to progress a transaction.
This then causes further issues, such as people losing patience in the process and removing themselves from a property transaction ‘chain’.
According to new statistics, 200,000 transactions collapse each year, leaving potential buyers with survey bills, as well as legal fees for properties they have lost. It is inevitable that consumers will spend large amounts of money during the preparation stage of purchasing a property, however when you end up with a new home at the end of it, the loss doesn’t feel so substantial.
Buying or selling property? Talk to our conveyancing experts today by calling 0800 157 7055.