Builders try to put their house in order on gazumping

This week's publication of the Irish Home Builders Association's new code of practice to stamp out gazumping is the first serious attempt to protect the consumer. However, the measure has by no means won universal approval, partly because of the way staged payments - seen by many buyers as a way to get them to fund building costs - will now be formalised. Some also consider the sanctions - fines, expulsion from the IHBA, and publication of a builder's name - too mild to have any effect. It remains to be seen how the IHBA's 1,400 members will handle the stricter regime. The code not only covers gazumping, but also the staged payments and the release of developments. The code stipulates that when new houses or apartments come on the market, the builder must disclose how many are being released and at what price. This is to prevent the price being "ratched up".

The provision was the subject of some amusement among IHBA members at its press launch on Monday when one builder said he would find it difficult to stick to the new rules. "Some of us are more used to releasing one house per day," he said. Of course, the builders were quick to point out that the real culprits in the gazumping game are some of the solicitors. "If solicitors got their act together and had their contracts done on time, then there would be no gazumping," was one comment.