Research by the UK’s leading auctioneer suggests that the auction market is continuing to prosper, while estate agent sales are still struggling.
Auction House says the latest data from the Land Registry indicates that 2017 saw a 21% decrease in residential sales compared to 2016, whilst the group’s own auction figures were at record levels.
Auction House Founding Director Roger Lake said: “We had an excellent year in 2017 with 3,485 lots sold – which is over 1,250 ahead of the second largest auctioneer. Also, our entries this month are up again year-on-year, with 740 lots catalogued for February – a total which is 5% ahead of the number in 2017.”
Roger Lake says that he believes the reason behind the rise is because auction has now become more mainstream, with its attractions better understood. He explains: “Auction is a much faster way to sell, success rates are far higher, and when the hammer falls contracts have exchanged and the sale is certain. What’s more, for the right property, auction will often deliver a better price through competitive bidding from several interested buyers.
“But a key element in ensuring a sale’s success is to enter the property into a regional auction room, rather than one that is out of area. We’ve found that local properties sell for more money to local buyers through nearby auction rooms.”
Roger Lake says that a wide variety of properties fall into the category of those most suited to auction. He adds: “Our results show that any property that would benefit from refurbishment, renovation or development is right for auction, or where there are issues such as a short lease, structural concerns, or other factors that make them unmortgageable.
“We regularly sell commercial lots, mixed use, all sorts of land, plus ground rents and all manner of other unusual lots. We also sell residential investments for landlords who leave their tenants in residence when selling – the big benefit here is that the seller keeps receiving rent until completion and the purchasing landlord takes over the tenancy and draws income from the day that they complete their purchase.
“Selling by auction really does make sense. That’s why it is growing in popularity, becoming more mainstream and delivering a speedy result for an increasing number of sellers.”