Just under a third of homes received an offer within an hour of visiting this year, or 31%, underscoring the current shortage of supply, according to data from MPowered Mortgages. This compares to 7% of properties receiving an offer within 60 minutes in 2018.
The fintech mortgage lender adds that the number of properties receiving a one-day offer is currently at 48%, up from 26% four years ago.
Its findings come from the company’s first House Pace Index, which examines buying behavior, driven by market conditions and government intervention over the past five years.
The study reveals that 12% of properties received a no-visit offer this year, up from 7% in 2018.
In London, the rush for secure homes “is the most widespread” with 37% of properties currently receiving an offer on the same day as a viewing.
He adds that 14% of housing in the capital has obtained an offer without the buyer seeing the property.
The report says 18-34 year olds are the most likely to bid early, with 11% admitting to making an offer before seeing a house, compared to just 5% of 35-54 year olds.
He points out that the average age of a first-time buyer in the UK is 34, “suggesting that acting quickly could be due to inexperience coupled with fewer mortgage transactions in the market”.
Buyers see an average of three properties before making their first offer and 40% of buyers only see two properties before making their move, the index adds.
He adds that “since buyers are quick, making a quick offer isn’t always rewarded” with a sale.
The report indicates that half of buyers have an offer that fails. The top reasons for an offer failing are that the seller received a higher offer, 32%, problems arose in the survey, 25%, or there was a break in the chain, 15% .
The study also found that 10% of offers failed when the buyer could not secure a mortgage, and 51% of sellers insisted that FTBs have a mortgage in principle before accepting an offer.
Managing Director of MPowered Mortgages, Stuart Cheetham, said: “We are seeing intense activity in the market as buyers rush to secure deals given the rate at which they are increasing in the current climate and this data shows that offers are made extremely quickly, despite a large proportion of these failing.
“Our House Pace Index sheds light on changing consumer behavior amid rising mortgage rates and aims to drive greater consideration in the home buying process.
“The race to find a home can be an even more daunting prospect now in an environment where mortgage rates are rising in line with the cost of living.
“Of the many hurdles a homebuyer faces, one element that can be largely controlled is their mortgage certainty and this will be even more important as rates continue to rise.