Photograph by Diana Parkhouse
House buyers in London are increasingly being faced with sellers increasing the asking price on properties by tens of thousands of pounds at the last minute as the competition for houses in the capital becomes increasingly fierce.
Gazumping has long been the fear of house hunters, as others swoop in a purchase a property for an extra few thousand pounds just before contracts are exchanged. However, this new form of ghost gazumping, as reported by the Financial Times, is different, as it involves no second buyer, and is instead a reflection of a housing market that is increasingly swayed in the favour of sellers as massive demand is couple with a low supply of properties.
Ghost gazumping generally occurs weeks after an initial offer is accepted, and the buyers have made plans to move into their new house. However, the seller is then often tempted by rival estate agents knocking on their door and telling them that they have agreed to too low a price. At this point in the transaction, there is little for the buyer to do but agree to the new terms and try and find a bigger mortgage.
House prices in London have risen by nearly 15% over the last twelve months, as many around the world continue to see London property as a safe investment with better returns than available on the stock market.
