The lack of stock within the market is leading to an outbreak of bidding wars among buyer for the properties that do come on the market, research has revealed, and that gazumping is on the rise.
Online agent Tepilo surveyed 2,000 home buyers and discovered that 23% had been involved in bidding wars, and that 19% had paid over the asking price to secure their preferred home.
The-dog-eat dog nature of the market is also evident in the research – which reveals that 86% of those surveyed believe the housing market is competitive and that 16% had been gazumped and 14% lost out to a rival during a bidding war.
And perhaps predictably given the research is from Tepilo, the results show that 26% of respondents thought the significant costs of buying and selling a home were also “factors that make it competitive”.
“This survey reveals the competitive nature of the UK housing market and how it’s affecting buyers, and things will only get more competitive in the more popular places to live until the Government really focuses on this as a priority,” says Tepilo founder and TV presenter Sarah Beeny (pictured).
“The lack of new affordable houses currently being built has resulted in a shortage of homes in bottleneck parts of the country where there’s simply too few houses available at a price normal people can afford.
“This, coupled with ongoing financial uncertainty that has made getting a mortgage so much harder in recent years, has resulted in an extremely competitive market.”
The research also revealed that 34% of the home buyers surveyed thought getting a mortgage was too hard.