Property auction sales have seen a notable rise as homeowners increasingly look to auctions amidst a cooling housing market, according to new research from Moverly, a digital property pack provider.
Moverly analysed historic data on the property auction market, looking at the average price of an auction property, the number of homes sold at auction, and the total value of property sold, to see whether the slowing down of the housing market has further increased people’s interest in the auction room.
The research shows that the number of properties coming to auction in the UK has increased by 11.3% in the past year, rising from 13,854 lots in 2021/22 to 15,424 in 2022/23.
While the average price of an auction property has declined by -1.8% year on year to £190,871, there was still a staggering £2.9 billion worth of residential property sold at auction in 2022/23.
According to 2022/23 figures, the region in which the most properties are going under the hammer is the North West (2,839) followed by Yorkshire & Humber (2,107).
But the biggest annual increase in the number of auction properties has been recorded in Scotland (53.8%) followed by the South West (26.4%).
Moverly co-founder Ed Molyneux, commented:
“In cooling market conditions, many sellers are struggling to find and secure good buyers. Rather than playing the waiting game while property values continue to stutter, an increasing number are heading to the auction room, accepting the marginal hit on the sale price in return for a quick and certain transaction.
“At the same time, while UK house prices are indeed cooling, they’re still relatively high after the past few years of the incredible market boom. And so we’re also seeing a good number of everyday buyers heading to auction, too, aware that they might be able to scoop up an affordable bargain at an expensive time.
“And we mustn’t ignore the influence of online auctions – they have somewhat democratised the property auction process enabling normal homebuyers to feel more confident in what was, for a long time, a challenging and intimidating environment for inexperienced auction-goers.”
Auctions are a quick, efficient and rewarding way to purchase property, and a great alternative to traditional means. If you’re thinking of giving it a try, don’t hesitate to get in touch.