Property auction market activity soars in October

The residential property auction market saw a significant
increase in both the number of lots offered and lots sold in October, as a high
number of people continue to turn to auctions as a means of buying and selling
property, fresh data shows.

According to the latest figures for October released by the
Essential Information Group (EIG), there were sharp double-digit increases in
both the volume of lots offered and lots sold for the month, up 26 and 38 per
cent respectively, whilst the total amount of money raised rose by just over 51
per cent to £298 million.

“Further increases are evident throughout the rolling
quarterly and yearly figures, demonstrating an ever strengthening market with
growing numbers of buyers and sellers choosing auctions as a viable route to
market,” said David Sandeman, Managing Director at EIG.

 The overall number of
lots offered, when taking commercial properties into consideration, increased
by 20 per cent to 3,972 lots, whilst the volume of lots sold rose by 30 per cent
to 3,064 – 77.1 per cent sales success rate – raising £493 million.

EIG’s historic data shows these to be the highest ever
recorded numbers in the month of October, comfortably surpassing the previously
recorded highs in October 2006.

Market activity in October was also greater than the
previous month when 2,837 of the 3,741 residential and commercial lots offered
across the UK were sold.

The sharp rise in numbers could be attributed in part to a
major London auction house holding their mid-Autumn sale in November last year
but in October this year, “however notwithstanding this caveat the statistics
remain exceptional”, said Sandeman.

He continued: “After the auction market experienced a slight
decline in activity in September, it is very pleasing to see an emphatic
turnaround in October as all of the 36 metrics measured recorded an increase
over their comparative period last year.”


The long-term future for the market also looks positive,
according to EIG, as in the last 12 months the gavel fell on almost 1,700 more
lots than in the previous 12 months, up 7 per cent, with total revenues of
£3.75 million – a rise of almost 12 per cent.


Toby Limbrick, Managing Director at Network Auctions added: “Our
own October sale had the largest catalogue we have ever produced and our sales
success rate in 2013 is an impressive 81%.


Our last sale of the year will take place on December 12th
at the Cumberland Hotel in London.”