Residential property auction update January 2016

This week property auctions data firm Essential Information Group (EIG) released its latest National Auction Analysis, so it's time to take a look at what has been happening in this part of the market recently.

National Auction Analysis

Looking back at 2015, EIG reports that there were a total of 26,866 residential property lots offered, almost 6% fewer than in 2014.

Of these, 20,845 (77.6%) were sold, a 1.4% increase in proportion of lots sold when compared with the previous 12 months.

The amount raised at residential property auction was also up on 2014, by 3.4% to £3,162,530,538.

During December, 2,713 lots were offered, 2,083 (76.8%) of which were sold, raising £331,343,088.

Apart from lots offered – which was the same – all these figures represent rises of between 3.5% and 7.5% when compared to December 2014.

During the final quarter of 2015, the highest number of lots offered was 1,219 in the North West, the highest proportion of lots sold was 83% in the North West Home Counties and the highest total amount raised was £261,472,750 in London.

Meanwhile, the fewest number of lots offered was 173 in Northern Ireland, the lowest proportion of lots sold was 60.6% in Scotland and the lowest total amount raised was £7,003,405, also in Scotland.

Around the auction houses

Network Auctions recently reported that during 2015 it sold 82% of lots offered across its eleven auctions held in London and Birmingham.

The firm also held its partner agent conference this month – which welcomed over sixty partner agents from all over the country.

Richard Worrall of Network Auctions unveiled Network E – a new method of sale the firm is launching.

It's an online bidding system which creates an exclusivity agreement upon the fall of the electronic gavel, and then a fixed exchange date is set.

In the event of a transaction failing to reach exchange because the buyer defaults, the deposit is shared between the seller and the agent.

Network Auctions says it has already successfully sold property through the Network E system and reports that the new product was enthusiastically received by everyone at the conference.

Meanwhile Clive Emson Auctioneers, a family-run firm which holds eight rounds of auctions at five locations on consecutive days every six weeks, reports that it has catalogued 159 lots for its first five auctions of 2016.

The firm had a record-breaking 2015, cataloguing 1,153 lots, selling £145 million worth of property and paying £850,000 to joint auctioneers.

Its founder, Clive Emson, recently spoke out about the government's targeting of the buy-to-let sector. He says it will unwittingly hit the social housing market.

“To alienate the private landlords is so short-sighted – the public sector clearly does not have the funds or expertise to develop sufficient social housing – so where do the tenants live if the privately owned stock is removed? This could be catastrophic,” he said.

The auctioneer's first round of auctions begins on February 8, with one event at Clive Emson's new Essex venue – Chelmsford City Racecourse.

Auction House London has also reported impressive stats for 2015, claiming to have sold 3,260 lots last year, over 1,000 more than its closest rival.

The firm's auctioneer, Andrew Binstock, has expressed excitement about an upcoming lot which the firm is describing as a 'prime piece of London real estate'.

Six-bedroom Belgravia apartment, 90F Eaton Sqaure, is up for sale for just £900,000.

However, the property has just three and a half years left on its lease, with only a 20 year extension available, which costs an additional £4.6m.

“This is an opportunity to acquire one of the best addresses in the UK at an unbelievably low starting price. It may come with a hefty sum to extend the lease, but once that has been carried out, I would estimate its value to be in the region of £10m,” says Binstock.

The lot will go under the hammer at Auction House London’s next auction, taking place on February 24 at The Landmark Hotel, Marylebone Road, London.