This means a house worth the UK average of £292,000 would go for an additional £99,280. Though if you’re buying in London - where four in 10 properties (42%) go to sealed bids – a typical winning bid could be in excess of £175,000 over the asking price.
The figures come from MPowered Mortgages’ House Pace Index, which shines a light on buying behaviour, and shows that behaviour is motivated by market conditions, government intervention on the housing market plus consumer behaviour of wanting to buy before mortgage rates increase further.
The study found that younger buyers (aged 18-34) were three times more likely to lose out on sealed bids compared to those aged 35 - 54. As the average age of a first-time buyer is 34, the study shows more experienced buyers have the upper hand (or more funds) when it comes to putting in a sealed bid.
The study more widely highlights the quickening pace of the market:
Nearly one in five (17%) properties receive an offer within one hour of a viewing
Close to half of homes (48%) receive an offer the same day (up from 26% in 2018)
One in eight (12%) properties have received an offer without viewing this year, up from 7% in 2018.
Stuart Cheetham, CEO, MPowered Mortgages, comments: “With rising mortgage rates, homebuyers need to consider acting quickly so as not to face extra costs.
"As a result, we expect to see the housing market move at speed as buyers race to lock in deals given the pace that rates are rising. This means buyers need to think about what their “best and final” offer would be on sealed bids. Having a mortgage that is ready to go means that buyers know exactly what position they are in before finding their perfect property. We use intelligent data and tech to provide mortgage decisions quickly, to help buyers land the property that they really want.”
