‘Gazundering’ Seen as Growing Problem for U.K. Housing Market

Posted on March 28, 2019 12:07 pm by manager
Automobiles sit in the streets outside rows of residential housing in this aerial photograph taken over London, U.K.
Automobiles sit in the streets outside rows of residential housing in this aerial photograph taken over London, U.K. Photographer: Matthew Lloyd
Gazundering, where a buyer lowers their offer for a home at the last minute, is becoming a growing problem, according to a report.
Some 45 percent of people surveyed think gazundering is a serious problem, up from 40 percent when similar research was carried out last year.Gazundering can happen just before a sale is set to go through, with sellers sometimes feeling under pressure to accept the lower price to stop the deal collapsing.

Some 45 percent of people also think negative equity, when the value of someone’s home is less than the mortgage amount they owe on it, is a problem, the report from campaign group the HomeOwners Alliance, BLP Insurance and Resi.co.uk architects found.

Paula Higgins , chief executive of HomeOwners Alliance , said: “People crave more certainty in the housing market – that the price agreed at point of sale will be the price paid.”

Meanwhile, 63 percent of people are worried about the quality of the country’s housing stock, rising to nearly seven in 10 (69 percent) renters, the survey of 2,000 people across the UK found.

And more than nine in 10 (91 percent) aspiring first-time buyers said the ability to get on the property ladder was a serious problem, while 88 percent and 87 percent respectively said house prices and saving for a deposit were a serious problem.

Source : Bloomberg