Gazundering (also known as ‘price chipping’), a practice Mortgage Solutions last reported on in 2019 and which the law firm admits “has been unheard of in recent years as the market has been so strong”, is back with a vengeance.

Solicitors from Osbornes Law have reported a surge in the practice and estimate it is currently happening in around half of all house sales.

Homebuyers ‘price chip’ by demanding money off the agreed sale price just before the sale is about to exchange, citing an issue from a survey such as damp, a problem with the roof or the electrics.

Buyers’ market swing brings lower offers

Simon Nosworthy, head of residential conveyancing at Osbornes Law, said this new wave of gazundering only began in the last few months but has rapidly gathered pace as the UK economy weakens and the housing market reacts to this.

He said: “Price chipping is a sign that the market is weaker and that the pendulum of power is swinging from the seller to the buyer. It has been a sellers’ market for the past few years, but with rising interest rates and the cost of living crisis that is changing. Sellers are left in a difficult position of losing their buyer when the market is turning or having to accept thousands of pounds less.

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He adds: “It’s a horrible position to be in for sellers but it is all too common now. While it may not be moral, price chipping isn’t illegal and is being used as a price reducing tactic by buyers. What a lot of people don’t realise though is that if a buyer does price chip, then they need to go away and get a new mortgage offer showing the newly agreed price for the property from their bank before they are able to exchange contracts. This can lead to delays when getting to exchange.”