There was a ‘surprising’ increase in the number of properties offered and sold under the hammer in August, otherwise traditionally a quiet period in the property auction market.
Newly released data from the Essential Information Group (EIG) shows that in the 48 auctions held across the UK last month, the volume of lots rose by 15% when compared with August 2015, while 20% more lots were sold with the total amount raised also up 20% to £62m.
In the residential market, lots offered increased 15% in August, from 763 lots to 880 lots, whilst lots sold increased 18% from 517 lots to 609 lots and the amount raised gained £9m to total £57m.
The recent market falls prior to August have had an adverse effect on the rolling quarterly figures, which are down in all four of the metrics measured by EIG, but the rolling yearly figures are still showing increases on the previous year - notably the 10% rise in the amount raised.
The commercial market made large gains in August, with double-digit rises in all four metrics, but David Sandeman, managing director at EIG, insists that investors should not read too much into the surge given the very small sample size that EIG are reporting on.
“The traditionally quiet month of August has yielded a surprisingly positive set of auction results,” writes Sandeman in his monthly newsletter.
He added: “Whilst one swallow doesn't make a summer, especially given the much smaller than average sample set, the industry will certainly welcome the increased activity and approach the busy Autumn period ahead with renewed confidence.”