"We expect to see the housing market move at speed as buyers race to lock in deals given the pace rates are rising."
Market conditions are creating a surge in the number of properties going to sealed bids, according to analysis by MPowered Mortgages.
The research shows that nearly one in three properties (29%) sold in the last year went to 'best and final' offers, an increase from 7% in 2018.
Winning bids typically go a third (34%) over asking price. 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 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.
The research also found that nearly one in five (17%) properties receive an offer within one hour of a viewing and 48% of homes receive an offer the same day, up from 26% in 2018.
In additio, one in eight (12%) properties have received an offer without a viewing this year, up from 7% in 2018.
Stuart Cheetham, CEO of MPowered Mortgages, commented: “With rising mortgage rates, homebuyers need to consider acting quickly so not to face an 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 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.”