Gazumping appears to be Forcing up House Prices

By February 9, 2009Articles

I didn’t think I would be writing that headline until at least the end of 2009, maybe even a year after that. However the Halifax states that house prices have increased 1.9% in January 2009 and that some real estate agencies have reported gazumping.

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Last minute bidding wars have broken out as house prices rose for the first time in 11 months. Charles Peerless, manager of Winkworths West End and City branches stated ” We’ve had gazumping on two lower priced properties – around the £360,000 mark – in January”

While Ed Mead, the director of the London estate agents Douglas & Gordon said their Wandsworth branch had seen one buyer attempt to gazump a rival by £50,000. The bidding upped the price from £800,000 to £900,000″

We have phoned agents in Wandsworth and a large agency said the “tipping point was Christmas”. We asked for any one bedroom flats with a garden from four agencies and have had a resounding “sorry, there is no stock available”. A rare commodity at the best of times, it’s still hard to find.

One property was offered, a nice 1 bedroom at the top of a mansion block in SW4 with communal garden for £225,00 but that still equates to £500 per sq ft, hardly a bargain when at the top of the market this would have been closer to £575 per sq ft.

However, it seems in London at least the wall of cash is still out there for some. It seems like a combination of private and commercial investors and a of course buyers who see this as a great opportunity to get on the ladder or move up it.

Have the low prices ceased already in your area?