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Government set to crack down on Gazumping

Following research carried by the Government has found that more than six in ten people who bought or sold a property have experienced stress due to delays in the property transaction process.

The Government will clampdown on gazumping with new measures targeting the property estate agent industry and make the process for purchasing a property easier for consumers.

It announced a raft of changes to overhaul the largely unregulated sector which has suffered from being seen as anti consumer.

The plans will encourage the use of voluntary reservation agreements to stop purchases from falling through and ending the practice of gazumping where sellers accept higher offers following an agreement to sell.

There is also a plan to weed out rogue estate agents by ensuring that all estate agents have a professional qualification.  It will also make it a requirement for estate agents to be transparent about whether they receive fees for referring clients to mortgage brokers, solicitors or surveyors.

The Government is also looking into further proposals as a result of the research into creating financial penalties for buyers who pull out of purchases and cause chains to collapse which are currently not included in the new plans.