Gazumping is a major concern

Graham Harris from the National Association of Estate Agents wants changes to the housing market

Overhaul Planned for Housing Market

One of the chief concerns is the practice of gazumping. This is where a buyer is dropped from an agreed sale because a third party has come in with a higher offer.

Gazumping was widespread in the housing boom of the 1980s and is beginning to creep back into an increasingly buoyant market.

Ministers will consider transferring a Scottish scheme to England and Wales. North of the border, gazumping is not a problem because of a system whereby would-be buyers submit legally binding bids early-on in the house buying process. When Labour was in opposition it also proposed a bond system which would guarantee that a bidder would not lose out financially even if the home of their dreams was snatched by a gazumper.

Would-be house buyers lose money when they are gazumped

Several ministers are involved in the review led by the Housing Minister, Hilary Armstrong. The aim is to identify a range of problems, not simply to look at the gazumping issue.

Research will also be carried out into public attitudes. A group of would-be house buyers will be tracked through the purchasing process from the moment they have their first offer accepted, right through to the time they first put the key in the door.

The special difficulties faced by people buying flats are another area the Government is keen to address.

The Prime Minister, Tony Blair, has sold his home in Islington, North London. It is not known how much the property went for but it was put on the market for just over £600,000. Mr Blair has moved his family to the residence above Number 11 Downing Street. The flat above Number 10 is too small to accommodate all of Mr Blair's children. It is thought Mr Blair wanted to keep the Islington house but security measures would have cost to much to install.