The number of properties offered at auction across the UK increased by 35.3% in June compared to the same month last year, according to data from the Essential Information Group (EIG). A total of 4,008 lots were offered during the month, with sales rising 31.3% and total funds raised climbing 33.5% to £519.7 million.
The increase in stock outpaced buyer demand, however, resulting in the national success rate declining to 65.3%. Both residential and commercial sectors recorded year-on-year growth in lots offered, sales completed and funds raised.
Regional performance
The South West and Yorkshire and the Humber were among the strongest performing regions during the April to June period, recording substantial growth in activity and sales. London posted a strong quarter, with both the number of lots sold and total value raised increasing by more than 20% year on year.
Scotland saw another sharp increase in auction activity, although success rates remained well below the national average. The regional variations come as local authorities introduce new licensing schemes affecting rental properties in various parts of the country.
Legislative impact
EIG suggested the increase in properties coming to auction may partly reflect landlords reviewing their portfolios following the introduction of the Renters’ Rights Act in May. The legislation, which abolished assured shorthold tenancies, has prompted some investors to reassess their holdings.
Stuart Collar-Brown, president of NAVA Propertymark, said: “The UK’s auction market continues to deliver positive results, with lots increasing by 35% year on year and sales increasing by 31%. This shows that both buyers and sellers continue to see the value of auctioning their property as they seek certainty in a turbulent economic climate.”
Collar-Brown noted that legislative changes affecting the property sector may be influencing commercial sales volumes and values, as investors favour longer-term leases over the now-defunct assured shorthold tenancy model in the residential market. The changes have also raised questions about rent guarantor contracts and their enforceability under the new framework.
Market outlook
EIG reported that activity remained steady heading into the summer, supported by a continued flow of stock and sustained buyer demand. Collar-Brown added that realistic pricing remains essential to create a competitive bidding environment and maintain growth in the auction sector.
