Gazumping Explained: What it is and whether it is legal

What Is Gazumping?

Gazumping refers to the situation where a seller who has already agreed to sell their home to one buyer subsequently accepts a higher offer from a different buyer before the sale becomes legally binding. In other words, the first buyer is “gazumped” and pushed out of the deal by a rival bidder. This typically happens during the period after your offer is accepted but before contracts have been exchanged. The property is usually marked “Sold STC” (Sold Subject to Contract) at this stage, indicating an offer has been accepted in principle, but until formal contracts are signed and exchanged, the seller can still entertain other offers.

Gazumping often occurs because the seller receives a higher offer and wants to maximize the sale price of their property. Sometimes, it can also happen if the first buyer is taking too long to progress the transaction (for example, due to delays in getting a mortgage, completing surveys or selling their own property), prompting the seller to switch to a new buyer who promises to move faster. Being gazumped essentially sends the original buyer “back to square one” - they lose the property and must restart their search.

Gazumping should not be confused with gazundering, which is the opposite situation, where a buyer lowers their offer at the last minute before exchange. Both gazumping and gazundering can derail a house sale, but gazumping is when a seller backs out in favour of a higher bid.

Why Does Gazumping Happen?

There are structural features in the house-buying process that make gazumping possible. In England and Wales, an accepted offer isn’t legally binding on either party until contracts are exchanged. However, the period between offer acceptance and exchange of contracts can stretch for many weeks while solicitors carry out searches, surveys are done and mortgage formalities are completed. Either party can pull out without a legal penalty during this period, which leaves room for gazumping to occur.

The average time to complete a residential property sale in the UK is quite long; for example, data from 2024 shows that the average time from conveyancer instruction to completion was around 160 days (over five months). The longer this period lasts, the more opportunity there is for a new bidder to emerge and for the seller to get anxious or tempted by a better offer. Sellers may grow concerned that the deal could fall through or simply see a chance to earn more, especially in a rising market where home prices are increasing rapidly.

Market conditions play a role as well. When the property market is highly competitive, with more buyers than available homes, gazumping becomes more prevalent. Sellers know there are other eager buyers out there and may be approached with higher bids even after accepting an offer. By contrast, in a slower or falling market, gazumping is less common. For instance, one study found that nationally the incidence of gazumping dropped from about 36% of sales in 2017 to around 25% in 2018, when the market cooled; in hot markets such as London, it had reached astonishing levels, with over 60% of sales involving gazumping during boom times. This shows that gazumping tends to spike when demand is high and buyers are willing to outbid each other.

It is worth noting that estate agents are legally obliged to pass on any new offers that they receive to the seller until contracts are exchanged. Even if you have a verbally accepted offer, if another buyer comes in with a higher bid, the agent must inform the seller. This means that, unless the seller voluntarily declines other offers, a better offer will always be brought to their attention.  

All these factors - lengthy transaction times, rising prices and the duty of agents to present offers - combine to create an environment where gazumping can happen.

Is Gazumping Legal?

The short answer is, yes, gazumping is legal in England and Wales. As frustrating as it might be, there is no law that forbids a seller from accepting another offer or changing their mind right up until the point of exchanging contracts. Until you and the seller have signed and exchanged the formal contract for sale, no binding agreement exists, so the seller is free to choose a different buyer without legal repercussions. In practice, this means that even after a seller has verbally accepted your offer, they can later accept a higher offer from someone else and you have little recourse in law to stop it.

Many buyers are shocked to learn this, especially if they’ve already spent money on surveys, mortgage arrangement fees or legal costs. Unfortunately, the system in England and Wales places the risk on the buyer during the pre-contract phase. Gazumping may seem unethical, but it is not illegal. Industry surveys indicate about 78% of homebuyers believe gazumping should be made illegal by the government, reflecting how strongly people feel about this practice. There have been calls for reform and even government inquiries into improving the home-buying process (including looking at gazumping) but no ban exists yet.  

It is important to mention that Scotland has a different system that largely prevents classic gazumping. In Scotland, once a seller formally accepts a buyer’s offer, typically through a signed letter of acceptance (“concluded missives”), the agreement becomes binding much earlier in the process. Also, many properties in Scotland are sold by solicitor estate agents who are bound by strict rules. Once they accept an offer on the seller’s behalf, they generally won’t accept a higher offer from someone else thereafter. As a result, gazumping is relatively rare in Scotland compared to England. It can technically still occur in Scotland if a seller hasn’t signed “concluded missives” and decides to switch agents to get a higher bid, but this is uncommon and frowned upon. By contrast, in Northern Ireland and Wales the process is similar to England’s, so gazumping can happen there as well.

The Impact of Gazumping on Buyers

Gazumping isn’t just an inconvenience; it can have a financial and emotional impact on buyers. When a sale falls through because you’ve been gazumped, you stand to lose the money you’ve already invested in the process. This can include survey fees, solicitors’ fees, mortgage arrangement fees, local search fees and so on. Industry research shows that 59% of buyers who were gazumped ended up losing money they had spent on such costs, since these typically cannot be recovered. On average, the financial loss per failed property purchase is around £2,400 in fees and charges that the buyer can’t get back. This is a significant sum, not to mention the wasted time and effort spent on a purchase that ultimately doesn’t happen.

Then there’s the emotional toll. Being gazumped often means losing a home you had your heart set on. By the time contracts are nearing exchange, buyers have often become emotionally attached to the property, they’ve imagined living there, and possibly given notice on a rental or sold their own house. When the rug is pulled out from under you at the last minute, it can be upsetting and stressful.

Tips to Avoid Being Gazumped

1. Be Prepared with Finances and Documents

Before you even make an offer, get yourself “buyer ready.” If you need a mortgage, obtain a Mortgage Agreement in Principle in advance so that you can demonstrate to the seller that you’re financially prepared. Line up a solicitor early and have all necessary documents and ID checks ready. Being organized from the start can help you move faster once your offer is accepted, leaving less time for rival bidders to swoop in.

2. Act Quickly and Stay On Top of the Process

Once your offer is accepted, don’t delay on any required steps. Book your survey immediately, respond promptly to queries from your solicitor or the seller, and push to get to exchange of contracts as soon as possible. The faster you progress, the sooner the sale becomes legally binding.

3. Ask for the Property to be Taken Off the Market

Request that the seller and their estate agent stop marketing the property once your offer is accepted. If the “For Sale” sign comes down and the online listing is marked as Under Offer or Sold STC, other buyers are less likely to make new offers.

4. Build a Good Relationship with the Seller

Maintain good communication with the seller. Let them know you are serious about the purchase and update them on progress. If the seller sees you as a committed buyer, they may hesitate before accepting another offer.

5. Consider a Lock-Out or Reservation Agreement

Negotiate a lock-out agreement where the seller agrees not to consider other offers for a certain period. While not standard, these agreements can help protect your position.

Conclusion

Gazumping is a frustrating part of the home-buying process in England and Wales, where a seller accepts a higher offer after initially agreeing to sell. Though many see it as unfair, it remains legal. It can cost buyers time, money and emotional stress.

While you can’t stop a seller from changing their mind, being prepared and acting quickly can reduce your risk. Understanding how gazumping works will help you avoid setbacks and move confidently toward a successful home purchase.

FAQs

Q. What does "gazumping" mean when buying a home?

A. Gazumping happens when a seller accepts a higher offer from a new buyer after already agreeing to sell to someone else, but before contracts have been legally exchanged. This leaves the original buyer without the property and often out of pocket for fees already paid.

Q. Is gazumping legal in England and Wales?

A. Yes, as in England and Wales, an offer to buy isn’t legally binding until contracts are exchanged. Until then, a seller can legally change their mind or accept a better offer.

Q. How common is gazumping?

A. Recent surveys show that around 37% of UK buyers have experienced gazumping, especially in competitive markets like London.

Q. What can I do to avoid being gazumped?

A. Act quickly after your offer is accepted, have your mortgage and solicitor ready, and ask the seller to take the property off the market.

Q. Is gazumping a problem in Scotland too?

A. Not usually. Scotland’s legal system makes house sale agreements binding much earlier in the process. Once “missives are concluded”, the deal is legally enforceable, making gazumping rare.