Estate agency fees from auction sales rise by 26% to £8.2m in Q2
Iamproperty’s Jamie Cooke says that even before the market was hit with increased mortgage rates, consumers have never been more open to auction.
Estate Agents sold a record number of properties via auction during April to June, latest data from Iamproperty’s Q2 Online Auction Index reveals.
Some 2,354 properties were sold via the Modern Method of Auction (MMoA) in Q2, up 32% compared to the same time last year.
CAPITAL VALUE
This raised over £412 million in capital value for vendors, increasing by 24%, up from £331 million last year. Sales also steadily increased from Q1 this year, up from 2,252.
Agents’ fees from auctions grew to £8.2 million, up by 26% from £6.5 million in Q1, with seven-day payments boosting revenues and securing cashflow.
The Iamproperty Index is the only quarterly overview of the MMoA market and the research also revealed auctions in the South saw the biggest growth with a 67% increase compared to the same period last year. The highest selling property during the quarter was in Essex and sold for £2.4 million.
CHALLENGES
Jamie Cooke (main picture), Co-Founder of Iamproperty, says: “With the new challenges in the market, agents have had to work especially hard to win new listings, set strong prices for their vendors and avoid sales falling through.
“Auctions really come into its own in market conditions like these, helping to push through sales for both agents and vendors.”
And he adds: “Our Q2 Index shows another quarter of growth for auction and it was our highest selling quarter.
“Even before the market was hit with increased mortgage rates, consumers have never been more open to auction as an alternative method of buying and selling, creating opportunities for agents across the UK.”
