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Gazumping could be banned by government - Sky news

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http://news.sky.com/story/gazumping-could-be-banned-under-new-government-plans-11093022

All over sky news this morning.

Among the horrific ideas include...

Mr Javid said the Government was looking for views on:

:: Gazumping - when a seller accepts a higher offer after already a agreeing to a sale

:: Confidence - schemes like "lock-in agreements" could build trust in the housing chain

:: Innovation - Putting more data online could speed up the house-buying process, which is "too slow" and expensive

:: Information - encouraging buyers and sellers to pull together evidence so homes are sale ready.

Mr Javid said: "We want to help everyone have a good quality home they can afford, and improving the process of buying and selling is part of delivering that.

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51 minutes ago, NorthernMonkey said:

http://news.sky.com/story/gazumping-could-be-banned-under-new-government-plans-11093022

All over sky news this morning.

Among the horrific ideas include...

Mr Javid said the Government was looking for views on:

:: Gazumping - when a seller accepts a higher offer after already a agreeing to a sale

:: Confidence - schemes like "lock-in agreements" could build trust in the housing chain

:: Innovation - Putting more data online could speed up the house-buying process, which is "too slow" and expensive

:: Information - encouraging buyers and sellers to pull together evidence so homes are sale ready.

Mr Javid said: "We want to help everyone have a good quality home they can afford, and improving the process of buying and selling is part of delivering that.

Oh no, it's that word again.............. help :rolleyes:.

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A lot of this sounds very sensible. 

I don't buy that this is just a way to stop gazundering - this proposal has probably been in development for well over a year. 

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2 hours ago, Bsmf said:

http://www.dailymail.co.uk/news/article-5004675/House-sellers-face-fines-pulling-deals.html

Could this just be to stop gazpundering in a falling market? Same old do nothing on the way up and then intervening on the way down.

Thanks Bsmf, the comments make for very positive agreement, a whole sea of green arrows, both parties are sick of the parasites involved in chains and want this mess fixed. The fact it is being looked at now in what I am sure is a stalled/falling market shows what motivates are government. In the end does it really mater what causes the change as long as the change is a good one?

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26 minutes ago, Ah-so said:

A lot of this sounds very sensible. 

I don't buy that this is just a way to stop gazundering - this proposal has probably been in development for well over a year. 

I'm not sure: my guess would be it's been in development since June.

It does feel like an attempt to prop up the market again: make it harder for chains to fall apart. I guess the problem is that chains falling apart can be a market signal before prices decline. If you stamp that out, the market signal will just come at a different time. My guess is people will hesitate much more before making offers, and the chains just won't form, so the same net result.

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21 minutes ago, Toast said:

I'm not sure: my guess would be it's been in development since June.

It does feel like an attempt to prop up the market again: make it harder for chains to fall apart. I guess the problem is that chains falling apart can be a market signal before prices decline. If you stamp that out, the market signal will just come at a different time. My guess is people will hesitate much more before making offers, and the chains just won't form, so the same net result.

I was thinking backwards through the bureaucracy that the proposals have probably travelled through to get to this stage.

Before it got to Javid's desk in its final form it would have gone to the senior department policy committee, perhaps once or twice. There would also have been the summer interregnum when not much work would have happened.

Drafting the internal document with evidence would probably have taken some weeks and that work have followed an earlier proof of concept discussion piece to decide that the policy was worth pursuing and spending time on. 

Prior to that you probably had someone trying to get something started on this for a year and building up support while everyone else has been too busy and so happy to let that sleeping dog lie, even if it sounds nice in principle. 

The reality is usually duller than a the idea of a Machiavellian tactician pulling the strings with his civil service henchman who respond instantly to thwart any threat to house prices. 

Edited by Ah-so

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1 hour ago, Bruce Banner said:

Oh no, it's that word again.............. help :rolleyes:.

As Ronald Reagan once said, "The nine must terrifying words in the English language are: I'm from the government and I'm here to help" :-)

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I imagine most people who gazunder probably planned to do it all along. I'd have thought this would just make people even more wary of committing in a falling market. Nobody wants to pay over the odds!

 

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1 hour ago, Ah-so said:

A lot of this sounds very sensible. 

I don't buy that this is just a way to stop gazundering - this proposal has probably been in development for well over a year. 

Agree all processes should be streamlined.....all parties to have access to update quickly and simply, any paperwork and information that can be is prepared before putting on market.....buyers borrowing agreed in principle before making an offer.....only certain conditions to back out or reduce offer like certain costly structural issues information on survey or valuation report out by more than 10%, (or could an independent survey already be in situ, could that be done?)  other than that the party that does back out buyer or seller pays all the other parties accumulated costs and fees plus a certain penalty for time wasting.;)

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46 minutes ago, Ah-so said:

I was thinking backwards through the bureaucracy [...]

Thank you for that! - I'm not familiar with the details of processes in parliament.

Would you say that a year is a good estimate for a minimum time to get anyhting to a draft policy?

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Sounds good to me. 

But it also sounds like a government who don't understand the land market, trying to do something about its failures without changing the status quo that made them rich.

The problems are much more fundamental than this.  Sales aren't low because the selling process is rubbish, although it is rubbish. 

Also, I suspect a lot of chains break because of difficulties with finance, so the legally binding commitment has to involve the mortgage provider.

Edited by DrBuyToLeech

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Home Information Packs with surveys included paid for by vendors would speed up sales. Though that highlights faults in a property so is vendor negative. What they probably want to do is the 'modern method of auction', that I'm seeing crop up in Cheshire. Buyer pays a deposit that is refunded if the vendor pulls out but not if the buyer pulls out. One thing is for sure, if the governbankment is taking advice from estate agents, it won't be good news for buyers.

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1 hour ago, Democorruptcy said:

Home Information Packs with surveys included paid for by vendors would speed up sales. Though that highlights faults in a property so is vendor negative. What they probably want to do is the 'modern method of auction', that I'm seeing crop up in Cheshire. Buyer pays a deposit that is refunded if the vendor pulls out but not if the buyer pulls out. One thing is for sure, if the governbankment is taking advice from estate agents, it won't be good news for buyers.

Interesting you should say that because I was thinking the same thing - didn't they recently scrap home information packs ?

I recently have had the (mis)fortune of going through this process. The thing is it took 3 weeks to get the results of the searches back. The best thing they could do is make sure all the search information is easily available on line. Before I put in an offer on a place I did a kind of amateur on line search, you can get a lot of information on things such as flood maps, but it is very disjointed and can be hard to interpret. What's needed is a joint portal for planning, floods, environment that sort of stuff so you can just put in the address and it gives you back all the info in the same way the professional searches do. There is no way that should take 3 weeks.

Anyway, when I got my pro searches back, they revealed something that wasn't in my amateur searches. Even in the pro searches though it wasn't well elaborated on. When I chased it up with planning (wealth of information there) I found a whole heap of rather interesting stuff. So morale of the story is, always try to do as much groundwork as possible before putting in the offer. I suppose at least for my 300 odd quid I learnt a new place to get info from and in the future I have another place to get info from before putting in any offers.

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8 hours ago, winkie said:

More to do with gazandering me thinks....just as the market is turning, funny that.;)

Yep, if this has indeed taken a year to work out then that’s nicely timed with the London market and wider SE levelling off and beginning to fall, if this was about calming the market on the way up then it should have been done in conjunction with HTB and FLS. Definitely more to do with protecting the market on the way down, hopefully the legality of the commitment will lead to further hesitation and more calculated, patient buyers.

Edited by Barnsey

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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