Odd News

UK tops European "gazumping league"

(Reuters)
Updated: 2006-03-19 11:07

LONDON (Reuters) - Britain is top of the European "gazumping league" and one in three buyers have seen the purchase of a new home fall through, a study on Friday said.

Real estate signs are seen in this undated file photo. Britain is top of the European 'gazumping league' and one in three buyers have seen the purchase of a new home fall through, a study on Friday said. [Reuters]

The report by life insurance firm Scottish Widows said 3.3 million buyers (37 percent) in Britain had been victims of "gazumping" -- where a house seller accepts an offer only to subsequently then agree a higher bid from a second buyer.

Even though different rules in Scotland make gazumping impossible there, that figure still puts Britain ahead of European countries such as France, Spain and Germany.

"As a nation we are obsessed with property, and gazumping is a problem that hits us hard, especially when you compare it to our European neighbors," said Murdo McHardy, of Scottish Widows Bank.

On top of gazumping, other factors such as financial problems or a change of heart following a survey, meant that 8.7 million Britons had seen a house purchase fall through, the report said.

It added that Britons also spent little time assessing a future home before buying.

More than a third viewed a future property just once with 66 percent spending less than 30 minutes checking out a possible purchase.

"Spending relatively little time on the property hunt doesn't seem to reflect the fact that for many of us it is the biggest financial commitment we're ever likely to make," McHardy said.