Latest stats from the Essential Information Group suggest there’s still a dynamic and robust UK property auction market despite the challenges of the residential sector in particular.
The overall trends for October - the most recent data available - indicate an 8.7 per cent increase in lots offered, totalling 3,183, and a corresponding 7.8 per cent rise in lots sold, reaching 2,136. The percentage of lots sold settled at 67.1 per cent. Financially, the market demonstrated strength, with a 14.2 per cent surge in total funds raised, reaching £380.8 million.
David Sandeman, director of Essential Information Group, says: "We are pleased to see such positive momentum in the UK property auction market. The increase in lots offered and sold, coupled with a substantial rise in total funds raised, reflects the resilience and attractiveness of the market."
Within the residential sector, positive momentum continued with a 5.7 per cent increase in lots offered and a 6.4 per cent rise in lots sold. The percentage of residential lots sold improved marginally by 0.6 per cent, reaching 68.1 per cent. Despite a slight financial dip of 0.7 per cent, the residential market remained robust, totalling £291.7m in funds raised.
Sandeman remarks: "The residential sector remains a key driver of the market, showcasing steady growth and consistent performance. The marginal improvements in the percentage of lots sold demonstrate the resilience of the residential market."
Conversely, the commercial market experienced a notable 39.3 per cent surge in lots offered and a 22.0 per cent increase in lots sold. However, the percentage of commercial lots sold saw a significant decline of 12.4 per cent, resting at 59.2 per cent. Total funds raised in the commercial segment, however, spiked impressively by 125.1 per cent, reaching £89.0m.
Sandeman comments: "While the commercial market saw a decline in the percentage of lots sold, the substantial increase in fundraising highlights the potential and opportunities present in this segment."
Delving into the regional markets, East Anglia experienced a 28.6 per cent increase in lots offered and a 30.5 per cent rise in lots sold. In contrast, the London market, while witnessing a 16.1 per cent uptick in lots offered, faced a 5.3 per cent decline in the percentage of lots sold, resulting in a 7.1 per cent decrease in total funds raised.
EIG says these regional intricacies highlight the need to consider specific geographic contexts for a comprehensive understanding of market dynamics. "The regional variations underscore the importance of a nuanced approach to understanding the property auction market. Each region has its unique dynamics, and acknowledging these nuances is crucial for informed decision-making" nots Sandeman.
Nonetheless he concludes: "The October 2023 statistics paint a picture of a vibrant and resilient property auction market in the UK. We anticipate continued growth and diverse opportunities for both buyers and sellers in the coming months."