Gazumping tops concerns for homebuyers – here’s how to avoid it

Our recent survey of over 1,000 potential homebuyers discovered that many might avoid entering the market due to fears of getting gazumped or gazundered, with over 14% of respondents listing it as their top deterrent.

Stamp Duty Land Tax (SDLT), alongside other tax implications came in second at 12%, alongside high mortgage rates (12%)*. So why is gazumping such a big issue, and what can you do to protect yourself from gazumping?

Timing is key to avoiding gazumping

This year’s SDLT threshold drop put timely completions at the front of mind for both buyers and sellers, as homebuyers rushed to secure the better rates and avoid market fallout.

Now we have moved past the SDLT deadline, buyers still have apprehensions about entering the market because of fears of gazumping; something which is more likely to happen the longer a completion, the time for property legally becomes yours, takes.

Data from 2024 shows that the average time to complete a property transaction was 160 days**. Beyond just a prolonged wait, extended completions can increase the risk of gazumping for buyers.

The benefits of Auction

Auction is a ready-made solution when it comes to avoiding the frustrations that come from gazumping. With completion in 56-days and a 95% completion rate based on standard properties and from receipt of draft contracts.

The non-refundable Reservation Fee secures the property for the winning bidder and significantly reduces the chances of gazumping. This provides the certainty buyers need when timescales are tight.

This is supported by having key information about properties provided at the very start of the process within what’s known as an Auction Pack which provides potential buyers with the information to make an informed decision about purchasing a property..

Shifting attitudes towards buying and selling at Auction

We’ve already seen Auction gaining popularity, with attitudes continuing to shift. Data from an online survey conducted by iamsold found that 36% of people would consider using Auction to buy property, including over half (56%) of 18–34-year-olds^.

Looking for how to avoid gazumping? Search for your dream Auction property here.

*From an iamproperty sentiment survey – ‘What would most likely deter you from moving home?‘

**From conveyancer instruction to completion for sales transactions in 2024 (Landmark Property Transactions Report 2024)

^ Based on standard properties. From receipt of draft contracts.