Lack of properties triggers return of gazumping

Many will be only too pleased to hear that the property market is continuing to gather strength, but with prices and the number of housebuyers on the rise, the scourge of gazumping is reportedly making a return.

Gazumping returns as buyers outnumber properties for sale

Pic: Getty

According to research by Hometrack, the number of buyers registering with estate agents rose by two per cent in the last month, while the number of homes coming onto the market fell by 1.6 per cent.

And the increased demand has put sellers in pole position, with sealed bids and gazumping becoming more common, particularly in areas like London and the South East, where prices and demand are highest.

The research revealed that the number of prospective buyers in London rose by more than six per cent month-on-month, with houses taking just over four weeks to sell on average. Properties in the capital now typically sell for 97.2 per cent of their asking price, and in the South East, sellers are achieving 95.9 per cent.

Richard Donnell, director of research at Hometrack, told the Daily Mail that a 'chronic lack of supply' was driving house price growth.

"Growth in new sales being agreed is running at four to five per cent per month, and this is continually eroding the stock of homes for sale. In contrast, levels of demand have grown by three per cent in the last two months."

Are you pleased to see the property market recovering, or do you think we're heading for a housing market bubble? Leave your comments below...