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Prices fall on fears of gazundering

02/09/2008

House prices in the northwest have fallen by two per cent in the last 12 months and there are fears of further drops as concerns about gazundering continue.

Gazundering is a tactic whereby buyers drop their offer at the last minute, sometimes by thousands of pounds.

This was common in the low housing market of the 1990s and experts say it is back again.

With gazundering the seller must accept the low figure or reject it and risk the entire process starting again.

Half of house sales in some areas are being gazundered, according to a report in the Metro.

It is a sign of a poor housing market badly damaged by the credit crunch comma with buyers desperate to get the cheapest deal.

The information comes from a National Association of Estate Agents survey of 686 agencies across Britain.

Meanwhile, Gordon Brown is extending a helping hand to the housing market by expanding a part-rent part-buy scheme beyond key workers.