Lambeth Building Society has announced a trial of insurance for home buyers that will cover against gazumping and other unexpected problems after purchase.

The purchase insurance will cover buyers who are left out of pocket after gazumping - losing a property to a higher bidder after agreeing terms with the seller.

It will also cover events including the discovery of faults in the building after purchase and post-sale property valuations that come in more than 5% below the purchase price.

Cheap cover

Although only initially offered to Lambeth customers on a trial basis for £30, there are predictions the purchase cover will soon find a wider market through insurers.

A mortgage specialist, Patrick Bunton, senior manager at Chase De Vere Investments told BBC Radio 5 Live the policy is cheap and is likely prove popular.

He said: "I think it will probably become much more common. I think many lenders and insurers will now be looking at this as a contract they can offer."