Gazundering, where buyers lower their offer shortly before exchanging contracts, is a growing issue in England and Wales, prompting calls for faster government reform.
Key facts
- •Gazundering is a practice where buyers reduce their offer price shortly before the exchange of contracts.
- •In England, Wales, and Northern Ireland, property offers are not legally binding until contracts are exchanged.
- •The Conveyancing Association reports that gazundering is a small but increasing problem in the current buyers' market.
- •Failed house sales cost sellers £400 million and the wider economy £1.5 billion annually.
- •The government intends to introduce fines and binding agreements to stop buyers from withdrawing without valid reasons.
Gazundering occurs when a property buyer reduces their agreed offer just before contracts are exchanged, leaving sellers under significant financial pressure. One seller, identified as Sarah, reported that her buyers attempted to lower their offer by £15,000 the day before the exchange. The practice is possible in England, Wales, and Northern Ireland because property offers are not legally binding until contracts are formally exchanged.
By the numbers
The Impact of Gazundering
When a buyer lowers an offer at the last minute, sellers face the choice of accepting a lower price or risking the collapse of their property chain. For Sarah, refusing the lower offer meant potentially losing the house she intended to buy and incurring additional legal and removal costs. After she put her house back on the market, her original buyers agreed to proceed at the initial price.
Market Trends and Reform Efforts
Beth Rudolf of the Conveyancing Association notes that gazundering is a growing problem as the property market shifts to favor buyers, who face less competition. Government data indicates that one in three house sales fail before exchange, costing sellers £400 million and the wider economy £1.5 billion annually. The Ministry for Housing, Communities and Local Government plans to introduce legally binding agreements to prevent last-minute withdrawals, though the current implementation target is 2029.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by BBC Business.
