Gazumping is back for unique homes

Gazumping, the scourge of the 90s housing boom, is back warns a property expert at Essex law firm Birkett Long.

Now that confidence is returning to the market and property prices are rising, Kurt Goddard, Partner and head of the firm’s real estate department, said people wanting to buy unique properties or those in unique locations are most at risk.

Recent statistics released by Nationwide Building Society for the first quarter of this year said London property prices had increased by a staggering 18 per cent year on year and by nine per cent for the rest of the country.

Kurt, who is based at Birkett Long’s Colchester office, said: “There is a ripple effect from London. People there are being given limited time scales to buy properties and this is completely distorting the property market everywhere else.”

He said he is seeing clients wanting to buy unique properties that have already had their offers accepted being asked by vendors to pay more with the justification that property prices have risen in the intervening months.

“Gazumping is back for unique properties in unique places. Because of this it has become difficult for valuers to put a price on those properties. Most of the time they just put a big price on it and see what they get.

“Even the tighter lending controls announced today (Friday 25 April) are unlikely to affect this niche market, which means gazumping may still occur.”

He said those places most at risk in Essex include areas such as Dedham, Stock and Westcliff, and in Suffolk: Lavenham,  Aldeburgh, Southwold and Long Melford.]

“Agents can’t get enough property on their books. There is more demand than supply because people are hanging onto their homes waiting for values to increase further,” he said.

But he said there is much buyers and sellers can do in order to speed up the process so that property chains do not collapse leaving a trail of disappointment.

His advice is to give your solicitor advanced warning you plan to move so they can help you provide the necessary details for your seller pack such as ensuring you have the title deeds that prove you own your property and finding out the exact balance on your mortgage debt.

They will also provide you with the enquiry forms to fill out regarding fixtures and fittings, collate any other information a buyer might want such as guarantees on replacement windows and any planning permission consents you have obtained for changes to your property. For leasehold properties they will also obtain a pack of information from the managing agents.

He said those wanting to move home need to scrutinise their finances to ensure they can fund the move before making an offer on a property.

Kurt said: “Find out how much you can borrow, how much you will pay in Stamp Duty and what the fees are for your solicitor and estate agent.

“If you have a house to sell, be realistic about the price it will fetch. If you are buying, the flaws in our legal system mean that at any point a vendor may pull out until you have signed contracts. By ensuring a smooth lead up to exchange will greatly help oil the wheels of the transaction.”

Kurt Goddard
01206 217391
[email protected]