Property auction activity softens, but longer-term picture remains positive
EIG figures show a year-on-year fall in property auctions, although activity in the past 12 months is ahead of last year.
Residential property auction activity softened in July, according to the latest figures from the Essential Information Group (EIG), with both lots offered and lots sold falling compared with the same month last year.
A total of 3,903 residential lots were offered in July, down 2.8% year-on-year, while 2,514 were sold, a 10.1% decline. The residential success rate fell from 69.6% to 64.4%, while the total raised from residential sales dropped 18.3% to £442.4m.
However, the latest monthly figures sit against a stronger longer-term performance. Across the 12 months to July, residential lots offered increased by 11.6% to 39,635, while lots sold rose 9.9% to 27,268. Total residential funds raised were also 9.1% higher.
Regional resilience
The rolling May to July figures reveal considerable variation between residential markets. London recorded particularly strong growth, with residential lots offered up 29.1% and sales rising 31.8%. The South West also saw lots offered increase 14.0%, although property auction sales were up a more modest 6.8%.
Yorkshire and the Humber recorded a 18.0% increase in lots offered and 17.0% growth in sales, while Scotland saw particularly significant growth from a lower base, with residential lots offered up 69.8% and sales up 61.8%.
The North West also remained ahead of last year, with residential lots offered up 9.4% and sales 2.3% higher. Wales, meanwhile, saw residential lots offered rise 5.3%, although sales fell 4.9%.
In contrast, residential sales were down 8.3% in the East Midlands, 6.7% in the North East and 7.9% in the North West Home Counties. The South East Home Counties recorded a 0.4% increase in lots offered but a 1.0% fall in sales.
Propertymark comments:
Stuart Collar-Brown, NAVA Propertymark President, commented: “Following the change of Prime Minister, the property market faces another period in which policy direction will be closely watched.
“Whatever the wider political and economic environment brings, the auction sector has shown its ability to adapt. If uncertainty persists, we may see more sellers and buyers turn to auction for the greater transparency and certainty it can provide.”
