A study from property data company TwentyCi has claimed that 12% of property transactions in England and Wales have been subject to gazumping this year.
According to TwentyCi, a property is defined as being gazumped where it has sold at a higher price – 1% or more – than that which was agreed at the point of Sold Subject to Contract (SSTC). Its study covered the period from January to August this year.
TwentyCi claims that the Greater London area has seen the greatest level of gazumping, with 14.46% of property transactions being purchased at a price greater than the agreed price at the point of being SSTC.
The west midlands comes in second with 13.97% of transacted properties being gazumped, exceeding the rate of gazumping in inner London (12.1%).
The south-west and Wales have seen the lowest rates of properties being gazumped at 9% and 7% respectively.
In addition to looking at the percentage of gazumped properties, TwentyCi monitored the levels of gazumping throughout the first three quarters of 2017 to identify which regions had seen the largest movements in the practice.
Across England and Wales overall, there has been a general increase in the rate of gazumping as the year has progressed, rising from 10% of properties in Q1 to 13% in Q3.
The west midlands has seen the largest growth in the presence of gazumps across the year, with 10% of transacted properties experiencing a forced price increase in Q1, increasing to 15% in Q2 and continuing upwards to 16% in Q3.
The south-west has also seen high growth of gazumping, rising from 7% in Q1 to 11% in Q3.
The data used by TwentyCi for this analysis is said to have covered 99.6% of the UK home mover market.
While the Government’s new ‘call for evidence’ into the house buying and selling market specifically cites gazumping as a problem to be overcome, EYE has heard little to no anecdotal evidence as to the practice in many months.
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