Gazumpers beware! House sellers face fines for pulling out of deals

HOME SELLERS could be ‘fined’ for so-called gazumping – pulling out of a sale to take a higher offer from a new buyer.

The idea is part of Government plans to make buying and selling a home easier. It comes amid warnings that collapsing home sales cost consumers £270 million a year, with 13 per cent of homebuyers in a survey of 2,000 blaming gazumping for the collapse of their deal.

One proposal includes ‘lock-in agreements’ which would tie in both buyer and seller – creating a financial penalty if either pulled out.

Although one million homes are bought and sold in England each year, a quarter of sales fall through. The review will also examine new digital solutions involving putting more data online to speed up the homebuying process.

Communities Secretary Sajid Javid called for evidence from estate agents, solicitors and mortgage lenders to see how to streamline the process.

Mr Javid said: ‘We want to help everyone have a good quality home they can afford and improving the process of buying and selling is part of delivering that.

‘Buying a home is one of life’s largest investments so if it goes wrong, it can be costly. That’s why we’re determined to make the process cheaper, faster and less stressful.

Last night, the National Association of Estate Agents welcomed the review. Chief executive Mark Hayward said: ‘A home is often the biggest asset a person owns and we are committed to ensuring consumers receive the best level of service when they buy or sell a property.’

But Labour condemned the proposals as ‘feeble’. Housing spokesman John Healey said: ‘This smacks of a political diversion from the hard facts of the Tories’ housing record.’