Sellers in the England and Wales property market are increasingly falling victim to “gazundering”—a practice where buyers lower their agreed offer just hours before the exchange of contracts. The Conveyancing Association reports that while the practice remains relatively rare, it is on the rise as the real estate sector shifts toward a buyer’s market.
One high-profile case involved a seller identified as Sarah, who was informed by her estate agent just 24 hours before exchanging contracts that her buyers had slashed their offer by £15,000. The buyers claimed they had done further research on the area, leaving Sarah with a choice: accept the lower price or risk the collapse of her entire property chain, including the purchase of her family’s next home. “It was awful; your heart just drops to your stomach,” Sarah told the BBC, noting that she had already paid legal and removal fees.
In the UK legal system (excluding Scotland), property offers are not legally binding until contracts are formally exchanged. This process takes an average of 120 days, during which time one in three house sales fall through. According to the Ministry for Housing, Communities and Local Government, these failed transactions cost sellers approximately £400 million and the wider economy £1.5 billion annually.
To combat this, the British government has announced plans to introduce legally binding agreements to prevent buyers from walking away or changing offers without a valid reason. However, these reforms are currently slated for implementation only by the end of the current parliament in 2029. Beth Rudolf of the Conveyancing Association noted that the increase in gazundering is driven by higher stock levels, which give buyers more leverage to force price drops.
Experts recommend that sellers protect themselves by setting clear financial boundaries with estate agents, preparing all Land Registry and environmental documents in advance to speed up the process, and considering “reservation agreements” where both parties pay a fee that is forfeited if they withdraw without cause.