Homebuyers in a chain cut off from two thirds of housing market

Two thirds (66%) of the housing market is cut off from homebuyers who are in a chain, as the majority of sellers now want a chain-free process, a new study has indicated.

Findings from MPowered Mortgages suggested that buyers who are in a chain can also expect to pay more to land their ideal property.

MPowered published the research in its House Pace Index, which has highlighted modern buyer and seller behaviours and attitudes. It showed the degree to which the housing market is a seller’s market, with most (66%) wanting a chain-free process or demanding a higher price from a buyer in a chain.

Vendors typically receive an average of three offers before agreeing to a sale. However, one in 10 sellers wait to secure at least five offers. MPowered’s findings also revealed that 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 the age of 55.

Furthermore, as sellers have had the upper hand, the findings also revealed that 41% want a cash buyer for their property. More than half (51%) also look for a first-time buyer who already has a mortgage decision in principle from their mortgage lender.

“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,” commented MPowered Mortgages CEO, Stuart Cheetham.

“That means having a mortgage that is ready to go, which is what over half of sellers are looking for from the person that purchases their property. We use intelligent data and tech to provide mortgage decisions quickly, to help buyers land the property that they really want.”

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