Some 37 per cent of British buyers lose their potential new property due to 'gazumping', making it the highest rate in Europe.

One in eight (3.3 million) buyers have been a victim of gazumping, where an accepted offer is outbid by another buyer and accepted by the seller, according to figures released by the insurers Scottish Widows.

The survey, which questioned 1,000 across Europe, revealed Britain topped the rate for gazumping at 37 per cent compared to 30 per cent in Italy, 29 per cent in France and 25 per cent in Spain.

Murdo McHardy, from Scottish Widows, said: "As a nation we are obsessed with property, and gazumping is a problem that hits us hard, especially when you compare us to our European neighbours."

Around 8.7 million potential buyers have had a purchase fall through, with almost a third of these saying they lost the sale because the house was withdrawn from the market while 19 per cent pulled out after survey results.

Half a million potential home owners have had a property fall through because they hadn't pre-arranged a mortgage.