Property auction sales rose sharply in May on the back of a significant increase in the volume of lots offered under the hammer, the latest figures show.
Some 3,200 lots were offered for sale last month, up 21% compared with May 2015, contributing significantly to the 17% annual rise in the number of lots sold to 2,374. Furthermore, the total raised at property auctions across the UK increased by more than £100m to £524.6m, the largest amount raised in the month of May for nine years.
Many property commentators predicted that the recent changes to stamp duty would cast gloom over the property auction market, particularly in the residential sector, but the gains shown in the market certainly buck the trend and dispel any notion of a declining market.
“These results are particularly pleasing as they've come against a backdrop of economic and political uncertainty caused by the impending EU referendum, which many forecasters warned could have a short-term detrimental effect on the housing market,” said David Sandeman (right), managing director, Essential Information Group (EIG), which provided the data.
The EIG figures show rises in 26 out of the 36 metrics measured, with many recording double-digit increases.
Notably, last month the residential market recorded increases of 24% and 19% for lots offered and lots sold respectively, and a staggering £63m increase in the amount raised - up 25.7%. Further double-digit gains are evident in the rolling quarterly figures, with almost £100m extra revenue gained in the last three months compared with the same period last year - up 14% from £704m to £802.7m.
In the commercial property market, lots offered increased by 14% to 755 lots, while lots sold rose by 13% to 594 lots.
“Despite the recent upturn the rolling quarterly figures remain down on last year, with lots offered and lots sold both falling by 12%, although the amount raised did gain £58m to £407.1m,” added Sandeman.