With increased competition in the property market, a source, who wished to remain anonymous, admitted that prospective buyers, particularly within the buy-to-let market were being forced to revert to sealed bids in an effort to secure their property.
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The source, said: “I have noticed that over the past few months a large portion of clients having to go to sealed bids and pay over asking price for London properties.”
He cited a recent example where a client had to give agents two envelopes in an effort to secure a BTL property in London that they were interested in.
Alex Hammond, PR manager at Kensington Mortgages, admitted that the property market was becoming increasingly competitive, with property prices likely to increase over the coming years.
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He said: “The news that borrowers are reverting to sealed bids shows the current strength of the property market. Their have been concerns raised by some industry commentators about the buoyancy of the housing market and the price of properties in the country, particularly in London and the South, but the problem is simple. There is too much demand and not enough supply, which is causing positive inflation, which is likely to continue for the foreseeable future.
“Sealed bids are probably not confined to the buy-to-let market and prove the competition in buying a property.”
