Now homebuyers are gazumping rivals for REMOVAL FIRMS by paying double

Now homebuyers are gazumping rivals for REMOVAL FIRMS by paying double for their services as firms ask for non-refundable deposits of up to 60% to guarantee bookings

Desperate homeowners are increasingly offering to pay double the usual hire fee
Firms are asking for non-refundable deposits of up to 60% to guarantee booking
Experts have warned that cowboy removal firms are taking multiple bookings
They then choose the highest bidder and cancelling the others at the last minute

The rush to buy a house before the end of the Stamp Duty holiday has triggered a new form of gazumping – for removal services.

Desperate homeowners are increasingly offering to pay double the usual hire fee, while firms are asking for non-refundable deposits of up to 60 per cent to guarantee a booking.

Experts have now warned that cowboy removal firms are taking multiple bookings for the same time slot before choosing the highest bidder and cancelling the others at the last minute, creating chaos for many families.

Ian Studd, director general of the British Association of Removers, said the problem had been exacerbated by a shortage of vehicles and storage space.

Desperate homeowners are increasingly offering to pay double the usual hire fee, while firms are asking for non-refundable deposits of up to 60 per cent to guarantee a booking (file photo)

He added: ‘There is huge demand at present and a lot of my members, regulated firms, are having to ask for non-returnable upfront deposits of up to 60 per cent to accept a booking.

‘I’ve heard about buyers so desperate to find a moving company they are willing to pay double.

‘There are also cowboys out there. This is an unregulated industry with an enormous black market of so-called moving companies demanding cash in hand. People have no idea what sort of people they are letting inside their home. Some of these companies are cashing in and dropping customers to get the highest price.

‘We are hearing stories every day. But our members can’t just magic up more trucks and men to meet the demand. Consumers need to be aware what is going on and check who they are dealing with.’

An average June usually sees about 180,000 sales, but this month the number is expected to increase by at least 20 per cent as buyers try to meet the end-of-the-month deadline.

It has come as a result of Chancellor Rishi Sunak’s bid to help the property market during the pandemic, by extending the tax-free holiday on the purchase of main homes worth up to £500,000.

The average three-bedroom house move requires a large removal lorry plus a van, with hire prices about £1,000 to £1,500 depending on the distances involved and the amount of furniture needed to be shifted.

Headteacher Claire Smart, 39, her husband Ben and their two children are due to move on Friday to a four-bedroom £495,000 home in Aston Abbotts, Buckinghamshire.

She told The Mail on Sunday: ‘I had to phone almost 50 companies before I could find a removal firm. I even got five quotes but none of them could fit us in.

‘It has been an emotional roller coaster and there have been lots of tears. I’ve now found a very established firm. It’s more expensive than the quotes I had but it has given us peace of mind.

‘I have a colleague who can’t find anyone at all and has managed to hire a van. Most people with a houseful of contents, children plus a dog would not be able to do that.’

Michael Clark, who runs Clarks removers in Amersham, Buckinghamshire, said that he has been giving 120 quotations a week instead of the usual 60.

‘I could easily be doing 180 a week but we just don’t have the capacity,’ he added. ‘We are turning away hundreds of clients.

‘We’ve had people offering us an extra £2,000 to give them a moving date. The situation is so desperate.

‘So these people have no choice but getting any man with a van who has set up a website.

‘But these people are not skilled and do not know how long it takes to clear and move the contents of a house. They have no clue about how to stack or pack a van.

‘There is going to be a lot more upset and anger in the next two weeks.’

Source: Read Full Article