Gazunderers exploit falling house prices

Industry professionals are warning that gazundering is making a comeback as property buyers take advantage of falling house prices.

Gazundering was common in the recession in the early 1990s and entails undercutting offers to sellers as house sales are about to complete.

Doug Sleaper, regional director of London-based Regent’s Estate Agents, says that whereas gazundering was born out of desperation in the 1990s, now it’s a case of opportunism.

He says: “Buyers are trying to take advantage of what they perceive to be leverage in a buyer’s market.”

Mike Fitzgerald, sales director at Brentchase Financial Services, warns that gazundering could have a knock-on effect on property chains.

He says: “It can be dangerous because if sellers are forced to lower their prices they may not be able to secure mortgages for their next purchase.”