In the wake of a turbulent 2023 for the property industry, Essential Information Group, a leading provider of data and insights in the UK property auction market, sheds light on the challenges and triumphs faced by buyers, sellers, and investors. 

David Sandeman, director, says: “The property auction market has navigated through a complex landscape marked by rising mortgage rates, the cost-of-living crisis, and economic uncertainty. Despite these challenges, the resilience of the market is evident in the substantial 16.6 per cent growth in the number of lots brought to sale.” 

Auctions showcased a 13 per cent increase in properties successfully sold under the gavel. However, the growth comes with cautious considerations. 

Sandeman notes: “While the overall success rate dipped compared to the previous year, the total amount raised showed modest growth at 1.4 per cent compared to the previous year. This dynamic reflects the motivation of vendors in the face of changing environments in both the Residential and Commercial sectors.” 

Delving into the residential sector, a surge in sales by 14.7 per cent and a more conservative growth in total raised by 4.8 per cent contributed to a year-on-year decrease in the average sale price to £168,453 — that’s a 8.6 per cent drop from 2022.

Sandeman suggests this decrease may be attributed to various factors, including variations in property type and size, as well as regional performance. But he adds: “Despite this, positive indicators point to a rebound in buyer confidence, especially with the gradual reduction in mortgage interest rates, setting the stage for a potentially bustling January 2024.” 

In the commercial arena, a level of stagnancy suggests sustained interest from investors. Sandeman advises caution, stating: “The drop in total raised for 2023 warrants attention for those planning transactions in the coming months. Understanding market dynamics will be crucial for informed decision-making.”