UK’s property auctions market softens

Attracted by the prospect of no property chain, with buyers and sellers entering into an immediate and legally binding contract as soon as the gavel falls, auction rooms across the UK are regularly filled with investors looking for their next property acquisition, but the market is currently quiet – very quiet.

The number of property auction lots offered dropped by 7.6% last month, from 2,341 lots to 2,163 lots, whilst lots sold fell over 10% to 1,591 lots from 1,774 in November 2015, according to the latest figures.

Despite the dip in sales, the data from Essential Information Group (EIG) shows that auctioneers saw revenues increase by 2%, from £272m to £277m.

The residential auction sector saw a 1.1% fall in lots offered last month, from 1,990 to 1,969, while the number of lots sold fell by 4.7% from 1,508 to 1,437, and yet residential revenues were up 7%, from £239m to £255m. 

“These results are indicative of the market’s form over the last six to nine months, and are perhaps unsurprising given that the economic and political backdrop has changed markedly during this period,” said David Sandeman at EIG. 

“It would be a brave man to predict what the future holds in 2017, but one can be sure that auctions will continue to provide a quick, transparent and effective means of buying and selling property,” he added. 

Overall

N.B. Figures in brackets denote the comparative period last year

Residential

Commercial