A home move that had been progressing smoothly turned stressful for Sarah, who was packing up a family house she had outgrown when her buyers lowered their agreed price by £15,000 the day before contracts were due to be exchanged. The sudden change, she said, felt devastating because it threatened both the sale of her property and the purchase of her next home.
The episode is an example of gazundering, when a buyer revises an offer downward just before exchange. In England and Wales, an accepted offer is not legally binding until contracts are exchanged, which leaves sellers exposed to late pressure. According to the report, the average gap between offer acceptance and completion is about 120 days, and around one in three sales fail before exchange. The Ministry for Housing, Communities and Local Government says this costs sellers £400m and the wider economy £1.5bn a year.
Why the practice matters in a softer market
The Conveyancing Association says gazundering is still relatively uncommon, but it has become more frequent as the market has shifted in favour of buyers. With more homes available than purchasers looking to buy, sellers can feel forced to accept a lower price rather than risk losing the deal altogether. In Sarah’s case, refusing the reduced offer could have meant extra legal fees, wasted removal costs and the possibility of losing the house she was planning to buy.
The report says the government has set out reforms for the homebuying process in England and Wales, including measures intended to curb last-minute withdrawals and price cuts. Those changes are currently scheduled for implementation by the end of the current parliament in 2029, although the Ministry says it wants to stop gazundering by introducing legally binding agreements and penalties for buyers who walk away without a valid reason.
Industry guidance suggests sellers can reduce the risk by making clear from the outset that their finances cannot accommodate late renegotiation, and by ensuring legal paperwork and searches are prepared early. The Conveyancing Association also points to reservation agreements and conditional binding offers as ways to give both sides more certainty during the transaction.
Source: bbc.co.uk
