Is property gazumping illegal? The proposal of a property reservation agreement


In a newly released episode of The Property News Show, the host ,Thom Luter, and the co-founder of Progressive Property, Mark Homer, are joined by Neville Wright, serial entrepreneur, founder of the hugely successful company Kiddicare and a property investor with an extensive portfolio covering both residential and commercial buildings.

Is gazumping illegal? and is the plan being put forward to end gazumping when you buy property realistic? According to The Guardian, the proposal of a property reservation agreement for both buyer and seller and a financial deposit of £1,000 to lock everyone in sounds great but is there too much wiggle room in the term ‘good reason’ when it comes to pulling out of a deal?

Property investor Mark Homer says that a plan to end gazumping in house sales is on the face of it positive, as a lot of money is wasted in this country through lost legal and survey fees. According to the co-founder of Progressive Property, the answer may be to go the same way as Scotland and get the vendor to complete some legal and survey work at the start of the process.

There are more of questions than answers with this new proposal of a property reservation agreement, but an end to gazumping would be a good thing for all involved in property purchasing.

Finally, we have a date for the election but what would happen if a labour government and Corbyn scrapped stamp duty? Currently, first-time buyers do not pay stamp duty up to £500,00 and for properties below a million-stamp duty has decreased so if they reduce or scrap stamp duty rates it could have an inverse effect with less stamp duty take due to falling transactions. An increase on buy to let and second home stamp duty will surely fuel the continued exodus of residential landlords from the market resulting in further rent increases so are the proposed changes to stamp duty about trying to help, or is it really just about the votes?

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