The number of lots per auction has steadily increased throughout the second half of 2022. September to October also saw an increase of 50% in the number of lots. Auction values have also subsequently increased in line with rising lot numbers with My Auction’s December lots combined worth circa £3m. This is the highest seen this year, followed closely by May’s auction which listed at just over £2m.
According to recent HMRC figures, the number of homes sold in September was 32% lower than when compared to September 2021. The figures from My Auction show that property auction homes are significantly bucking the trend when it comes to the volume of residential sales.
Stuart Collar-Brown, Co-Founder and Director of My Auction, said: “Given such political turmoil, it’s natural that the interest in property auctions is growing. We saw this back in the crash of the 1990s and then again in 2008 when the last financial crisis happened. In such uncertain economic climates, auctions offer a very viable way to buy and sell property quickly and efficiently with far less stress than buying through traditional private treaty sales.
"For the buyer, its appeal is speed of sale, and the transparency and certainty of knowing that you can be in the property within 28 days. For the seller, it’s a quick and efficient way to unload property that could fall in value if a sale isn’t secured quickly.
“Property auctions provide a useful barometer of the property market, often offering an early steer of the direction the overall market is heading in. With base rates increasing, mortgage rates rising, not to mention the looming recession and cost of living crisis, it’s no surprise that traditional residential property sales are taking a hit.
"During a market downturn, property auctions offer everyone a sensible route to market and we expect interest to continue rising as we head into 2023.”
