Sealed bids have returned to the London property market, agents are reporting, because of fierce competition in the face of a severe shortage of property for sale.
One firm, Cluttons, said that when it offered a three-bed house in need of refurbishment but close to a good school in Clapham, there were 68 viewings and 20 sealed bids. The property went for well over its £1m asking price.
The firm says that as buyers fight for limited stock across London, sealed bids are becoming the norm, especially for one-bedroom apartments in zone one and family homes in some areas.
Cluttons said it is seeing multiple offers being made, ending in sealed bids, with the vendor often achieving in excess of the full asking price.
One-bedroom properties around the £550,000 price, which have appeal as pieds-á-terre, first-time buyer homes or as investments, are seeing a flurry of buyers.
James Hyman, partner for residential sales at Cluttons, said: “The sealed bids process is the fairest way of letting buyers dictate what they are prepared to pay for a property.
“Domestic and foreign buyers are not being put off by high prices and have been encouraged by the performance of the market, which has suffered little impact from the wider economic slowdown.”
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