Property auction activity slows due to EU referendum

The UK property market retracted slightly in June in the run-up to the EU referendum and in the few days after the historic decision to leave the 28-member bloc, official figures show.

Newly released data from the Essential Information Group (EIG) shows that the number properties offered at auction fell by 10% in June to 2,662, when compared with the 2,950 lots recorded the previous year, while lots sold tumbled by 12% from 2,239 to 1,961.

The residential auction market saw falls of 6.6% in lots offered and 8.8% in lots sold last month, and a 16.3% slump in the total amount raised. But despite these falls, the quarterly and rolling yearly figures remained largely positive due to a strong run of results in the months leading up to the EU referendum.

Overall, 254 more lots were offered in the second quarter f the year compared with the corresponding period last year, representing an increase of 3.8%, whilst lots sold rose 1.9% to 5,129 and the amount raised by 4% to £785.8m.

The commercial market also suffered as a consequence of pre-Brexit speculation. The volume of lots offered fell by 25% in June, from 507 to 380 lots, whilst lots sold decreased by 30% from 381 to 267 lots.

Despite the sharp fall in sales the commercial revenues fell by less than £3m, from £36.49m to £33.9m, and the quarterly figures and yearly figures actually saw growth in this regard by 14% and 12%, to £300.55m and £1.446bn respectively.