Nearly one in five property transactions now fall prey to gazundering, according to fresh insights from property firm Quick Move Now.

Gazundering—the contentious practice where buyers attempt to slash the agreed-upon purchase price at the eleventh hour—has surged in prevalence, reflecting growing hesitancy among buyers navigating an unpredictable market and turbulent economic conditions.

Recent data from Quick Move Now underscores the trend, revealing that 19% of property deals witness an attempt at post-agreement price renegotiation.

Delving into the specifics, the research highlights that in 6% of gazundering cases—equating to 1% of total property sales—sellers flatly refuse the revised offer, leading to an outright collapse of the deal.

Meanwhile, in 28% of gazundering instances—accounting for 5% of all sales—the seller rebuffs the price reduction but manages to steer the transaction back on course at the originally agreed-upon price.

A notable 56% of cases—representing 11% of total sales—see sellers capitulate to buyer demands, agreeing to the reduced price to ensure the sale proceeds.

Lastly, in 11% of gazundering scenarios—2% of all sales—sellers push back against the initial reduction but ultimately consent to a lesser discount, allowing the sale to conclude with a compromise.

Danny Luke, managing director at Quick Move Now, offered insights into the factors fuelling this growing phenomenon: “There are several reasons why we’re now seeing a higher likelihood of gazundering.

“In the current climate, buyers are more cautious. Higher interest rates and an end to lower Stamp Duty rates mean buying a property is more expensive.

“Buyers are therefore likely to intend to stay in their next property for longer.

“Buying property feels like a bigger investment and buyers are wary of making a costly mistake. We also need to consider the rising cost of building materials.

“People are less likely to be looking for a 'doer-upper' in the current market due to rising costs. If a property survey uncovers unexpected work needed, buyers are more likely to ask for a price reduction to cover the cost.”

Beyond individual transactions, the broader implications of gazundering raise significant concerns. Luke further commented:

“Sellers may be shocked or disappointed to experience gazundering, but the reality is that under our current buying and selling process the buyer has very little information about a property’s condition at the point of making an offer.

“Under the current system, there is little that can be done to protect yourself from gazundering, other than making sure your property is well-maintained, and any potential issues are addressed before putting your property on the market.

“The rate of gazundering does, however, add fuel to the argument of moving closer towards the Scottish system and providing more information, including a property survey, at the point of marketing the property. It would then be easier to make offers legally binding earlier in the buying and selling process.”

With uncertainty looming large over the property sector, both buyers and sellers must brace themselves for an increasingly complex and unpredictable negotiation landscape.