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Thursday, November 5, 1998 Published at 10:31 GMT


UK

Crackdown on gazumping

Plans to speed up property sales look set to increase prices

House-sellers would have to pay for structural surveys and legal expenses under government plans.

The new legislation to crackdown on gazumping, in which a seller reneges on the deal when he gets a higher offer, could come into force next year.

The move is among several options for a consultative Green Paper.

House price rise fears

Estate agents claim gazumping happens in up to 20% of house sales - and while ministers concede they cannot outlaw the practice, they can make it more difficult by speeding up the sale of a property.

It is believed the move would cut the time taken to buy a home from an average of three months to less than a month.

But while the plans will be welcomed by many, the down-side, according to the Times newspaper, will mean an increase in house prices.

'Seller would save'

The Times says plans to make the seller rather than the buyer pay for surveys, planning searches and other costs before putting a property on the market could add £1,000 to the cost of selling a two-bedroom house.

But the government says the seller would save when buying another house.

"We think it would be cost neutral," said an Environment Department spokesman.

"If most people who sell go on to buy another house, they would also be the recipient of information on the house they are buying - and it would benefit first-time buyers who would be just getting information without having to provide it."

The plan, which is part of a wider reform of homebuying, comes after a year-long consultation with estate agents, the Law Society, and mortgage lenders amid concern about gazumping.

Housing Minister Hilary Armstrong is expected to publish the Green Paper later this month.





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