Seven per cent more lots were offered in the first half of the year, resulting in 12,156 residential lots up for sale. Of these, 8,904 lots were sold, which is a 9% year-on-year rise, according to new research from Essential Information Group.
Auction Properties sold at auction had been rising steadily up until the peak in 2007, but then fell heavily by 27% from 2007 and 2010 to just 8,138.
However, when compared with residential sales in general, the auction market did not experience the same levels of decline, with Land Registry figures showing a 50% drop in residential sales for the same period.
In fact, the percentage of lots sold at auction has remained consistent during the last six years, with rates peaking at 78.2% in 2006 and falling to as low as 62.8% in 2008. However, 2011 figures are looking more healthy at 73.2% which is backed up by a stable residential auction market.
Going, going, gone
Auction properties on offer:+ 7% to 12,156.
Properties sold at auction: +9% to 8,904.
The percentage of lots sold at auction: 73.2%.
Money raised from auction properties: £1bn.
Properties sold at auction as a percentage of all residential sales doubled from 1.5% in 2006 to 3% in 2011
EIG figures show that amounts raised through property auctions increased steadily throughout the last decade, reaching an all-time high in the first half of 2007 with over £1.8bn on receipts. However, the property market correction followed resulting in a sudden decline in values which filtered through to the auction rooms, where in 2008 and 2009, the totals raised at auctions for residential property dropped by 28% and 24% respectively.
But the market has now stabilised and the research looks like figures could even improve in the next six months.
The findings by EIG are backed up by strong results from Network Auctions. Director and Auctioneer Guy Charrison said: “Our average success rate in 2011 is 73% and we have raised over £100m. Our first three sales this year have raised £9m compared to £11.3m last year but the actual number of lots sold this year is up 17% which reflects market sentiment for lower value lots.
Overall, the number of residential sales at auction as a percentage of all residential sales has doubled from 1.5% in 2006 to 3% in 2011, which EIG believes is a trend that will continue in the coming months and years as sellers and buyers continue to see auctions as an effective way of buying and selling property.