Sealed bids in Scotland must be stopped

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by Kay Murchie

Purchasing a property Scotland is slightly different from purchasing a house in other parts of the UK. In England and Wales, a property is usually advertised at a given price and the vendor accepts that they may well have to settle for a price that is lower than the original asking price.

However, under the Scottish system, the vendor sets a price and invites offers in excess of this via a sealed bids system, with successful bids possibly 20%-40% above the asking price.
However, a Member of the Scottish Parliament (MSP) has said that the use of secret bids must end. Prospective buyers should be made aware of any rival bids and how much they were worth, rather than making them enter a secret bidding war.

The MSP has recommended that the Scottish Parliament look to other nations for ways to help first-time buyers and added that the system of secret bidding is traumatic. Failed bids are costly to an individual.

According to figures from the Department for Communities and Local Government, Scottish property prices are currently rising at 16.4% per year.