Residential property auctions continued to power the UK auction market in April, helping drive a rise in both sales volumes and funds raised despite mounting pressure on success rates from increasing stock levels.
According to the latest data from the Essential Information Group (EIG), 3,433 lots were offered across the UK during April, up 9.5% year-on-year.
However, supply continued to outpace buyer demand, pushing the national success rate down to 64.7%, compared with 68.2% a year earlier.
The residential sector remained the market’s strongest performer. Residential lots sold rose by 8.1% year-on-year, while the total value raised increased to £333.8m.
COMMERCIAL WEAKNESS
Commercial auctions, however, showed signs of weakness, with commercial lots sold falling by 25.5% and total funds raised declining by 23.3%.
Regionally, Yorkshire & The Humber and the West Midlands delivered some of the strongest performances between February and April, with activity levels, sales volumes and funds raised all increasing strongly compared with the same period last year.
The North West also continued to see strong auction activity, while Scotland recorded the weakest success rates despite rising levels of stock entering the market.
SOLID APRIL
David Sandeman (main picture, inset left), managing director of Essential Information Group, says: “National auction activity remained solid in April, with 3,433 lots offered across the UK, up 9.5% year-on-year.
“However, supply continued to rise faster than sales activity, with the national success rate falling to 64.7% from 68.2% a year earlier.
“Residential auctions continued to support the market, with residential lots sold up 8.1% and total raised increasing to £333.8 million. In contrast, commercial performance weakened, with commercial lots sold down 25.5% and total funds raised falling 23.3%.
“Overall, auction activity continues to run ahead of last year across most parts of the UK, particularly within the residential sector. However, the continued increase in stock entering the market is placing pressure on success rates, as higher levels of available stock give buyers greater choice.”
CHALLENGING BACKDROP
Stuart Collar-Brown (main picture, inset right), NAVA Propertymark President, adds: “It is extremely positive to see such a strong set of results for the auctioneering profession across April.
“Against an extremely challenging backdrop of rising inflation and generally lower consumer affordability, it is enormously pleasing to witness what has been an increase in both lots placed for sale and lots sold across almost all nations and regions individually.”
