A massive surge in demand for property in Sheffield means that more buyers are prepared to go to extra lengths to secure their assets.
- Sheffield has been named as the gazumping capital of the UK
- Demand for property in the city has been rising for some time and buyers are deciding to go to extra lengths to get the real estate they want
- Newcastle also experienced an increase in gazumping, while demand for property in London subsided
High demand for UK real estate has seen nearly a quarter of all home purchasers be ‘gazumped’ by other buyers with higher bids.
The frenzied demand for property was most apparent in Sheffield, which was crowned as the gazumping capital of the UK. Nearly a third (29%) of property purchasers in the city have lost out to other buyers, which is an increase of +25% in just 10 months. eMoov, the company responsible for the research, revealed that demand for Sheffield property has been growing for some time and people are prepared to go to extra lengths – and budget – to secure assets.
Select Property Group has also experienced this strong demand first hand, having sold-out the Vita Student residence in the city. Early purchasers are expected to generate high levels of capital growth as the number of potential buyers rises.
Elsewhere, demand faltered in London. Institutional and buy-to-let investors have already switched their focus to regional cities in the UK and now the wider market, and international purchasers, are following suit. Gazumping in London fell 46%.
Newcastle is another UK city that has experienced a high increase in demand during 2015, with 16% of buyers being gazumped, a rise of 12%.
Founder and CEO of eMoov.co.uk, Russell Quirk, said: “It’s interesting however that we have seen an increase in Sheffield and Newcastle. It re-enforces our research on property demand in each city, with plenty of buyers looking to get on the ladder, a lack of inventory results in cutthroat tactics such as gazumping. This is due to the shortage of inventory to accommodate the rising demand for property in these areas.”