Buyers in a chain 'cut off from majority of the market'

Two thirds of the housing market is potentially cut off from homebuyers who are in a chain, new research claims.

A report published by fintech lender MPowered Mortgages claims the majority of sellers now want a chain-free process.

The findings come from the lender’s newly launched House Pace Index that aims to shed light on buyer and seller behaviours and attitudes.

Its research, based on a survey of 4,000 adults, found that 29% of sellers expect a larger offer from a buyer who is in a chain

The analysis found that one in three properties now receive an offer within an hour of a viewing.

Almost half get an offer within a day, up from 26% in 2018, MPowered Mortgages said.

Vendors typically receive an average of three offers before agreeing to a sale, the research shows.

However, one in 10 sellers wait to secure at least five offers. Younger people with a house on the market are twice as likely to wait until they had more than five offers, compared to sellers aged over 55s, according to the analysis.

A fifth of properties go to sealed bids and 32% of buyers have been gazumped by a higher offer, the research claims.

As sellers currently have had the upper hand due to the lack of supply, Stuart Cheetham, chief executive of MPowered Mortgages, said it’s not surprising that 41% want a cash buyer for their property.

Half said they also look for a first-time buyer who already has a mortgage decision in principle from their mortgage lender.

Cheetham said: “Our study shines a light on what makes a proceedable buyer and it’s clear that chains can put buyers at a disadvantage.

"However, if you find yourself in a chain, you need to make the best case possible to be an attractive candidate when putting in an offer.”

https://mqubewebsitecontent.blob.core.windows.net/content/docs/MPowered-HousePaceIndexReport.pdf