Many buyers desperate to purchase their desired home have been asked to enter into a bidding war, which can often include sealed bids, as a result of tough competition among purchasers across the UK’s housing market, fresh research shows.
Almost a quarter – 23% – of homebuyers who have bought, or are in the process of buying a property, have found themselves embroiled in a bidding war, and yet that is not guaranteed to be enough to secure their chosen home.
While 9% of Britons surveyed had entered into a bidding war and won, 14% of those entering a bidding war failed to secure their desired property as they were eventually outbid.
The study by online estate agent Tepilo also found that almost a fifth (19%) of people have had to pay over the asking price to secure a property, and a further 16% have been the victim of gazumping.
Some 86% of the 2,000 people surveyed think the UK housing market is too competitive and more than half (58%) believe property prices are too high.
Around a third (35%) also think there is a shortage of homes for sale in relation to the number of people wanting to buy, with a further 35% believing it is too hard to get a mortgage.
TV presenter and head of Tepilo, Sarah Beeny, said: “Some competition is healthy and ensures prices remain buoyant, which is good news for existing owners.
“But for first-time buyers, it’s becoming increasingly difficult to enter the market and this could cause real problems in the future as people who’ve already bought their first home will find it difficult to sell and move up the ladder.”