Buyers Hold More Power in Today's Market

The balance of power in the housing market has shifted. Higher mortgage rates, affordability pressures and an increased supply of homes for sale have created a buyer's market, giving purchasers more negotiating leverage than we've seen for several years.

One consequence is the growing concern over gazundering—a practice that can leave sellers facing a difficult decision just days before completing their sale.

What Is Gazundering?

Gazundering happens when a buyer reduces their offer shortly before contracts are exchanged, often threatening to walk away unless the seller accepts the lower price.

Unlike a genuine renegotiation following a poor survey or unexpected legal issue, gazundering is typically a negotiating tactic designed to take advantage of the seller's commitment to the move.

It differs from gazumping, where a seller accepts a higher offer from another buyer after already agreeing a sale.

Why Is It Becoming More Common?

Several factors are contributing to the rise in gazundering:

• Mortgage rates remain higher than many buyers became accustomed to in previous years.

• More homes are available for sale, giving buyers greater choice.

• Affordability remains stretched for many households.

• Property transactions continue to take a long time, increasing the opportunity for circumstances to change.

With the average transaction taking around four months, buyers often know sellers have already committed to their onward purchase, making a last-minute price reduction difficult to refuse.

How Can Sellers Reduce the Risk?

While gazundering cannot be completely prevented under the current system, sellers can take practical steps to reduce the chances of it happening.

Preparing comprehensive property information before marketing the home can minimise unexpected issues later in the process. Choosing an experienced estate agent and conveyancer also helps keep transactions moving efficiently.

It's equally important to ensure buyers have a mortgage Agreement in Principle or, if purchasing with cash, have provided proof of funds before accepting an offer.

The faster and smoother a transaction progresses, the fewer opportunities there are for last-minute renegotiations.

Could the Rules Change?

The government has previously announced plans to modernise the home-buying process by introducing more information at the beginning of transactions and eventually moving towards binding conditional contracts.

If implemented, these reforms could significantly reduce both gazumping and gazundering by introducing financial consequences for buyers or sellers who withdraw simply to secure a better price.

While those changes are still some way off, many in the property industry believe they would make buying and selling homes far less stressful.

Our View

Gazundering remains relatively uncommon, but it serves as a reminder that property transactions are not legally binding until contracts are exchanged. Good preparation, realistic pricing and working with experienced professionals can all help reduce unnecessary delays and improve the chances of a successful completion.

If you're planning to move home or remortgage, obtaining the right mortgage advice early can also help keep your purchase progressing smoothly and minimise the risk of unexpected complications further down the line.