My Auction, the online auction specialists has merged with Bamboo Auctions to form one of the largest online auction providers in the UK.

Rocket Auctions, a newly formed subsidiary of the Bamboo Group, will offer estate agents the ability to sell properties by online auction through Bamboo’s technology platform.

START TO FINISH

Agents will be able to manage the auction process from start to finish, now with the additional help and support of qualified auctioneer, Stuart Collar-Brown (main picture), founder and Chief Executive of My Auction, who moves across to Rocket Auctions and take on the role as the Group’s first in-house auctioneer.

Following the merger with My Auction, the Bamboo Auctions Group will have over 1,100 estate agent partners, with Collar-Brown bringing agents from My Auction across to join the platform. In his new role, Collar-Brown will also help to further build the estate agency network.

We have a shared ethos to make auctions fairer and more accessible to all.”

Robin Rathore, Chief Executive, Rocket Auctions (main pic, right), said: “Bringing My Auction together with Bamboo to form Rocket Auctions as an additional service to our customers, will help estate agents sell more properties.

“We have a shared ethos to make auctions fairer and more accessible to all, and Rocket Auctions will lead the way in education when it comes to property auctions.”

EXCITING YEAR

And he adds: “This year is going to be an exciting year for the Bamboo Group and we’re looking forward to breaking new records, introducing new technologies and continuing to deliver and improve our customer centric services.”

My goal for auctions has always been to bring integrity to the auction process.”

Stuart Collar-Brown, Founder and Director of My Auction (main pic, left), said: “Joining forces and forming Rocket Auctions creates a new powerhouse in the world of property auctions and I am thrilled to be part of this venture.

“My goal for auctions has always been to bring integrity to the auction process. In 2020, I joined the Propertymark NAVA Advisory Board to promote best practice in our profession and to ensure anyone recommending auction to a seller is doing so with the right intentions and with full knowledge of the pros and cons of a sale by auction.”

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According to analysis by Essential Information Group (EIG), almost 36% of auction bidders do not look at the legal packs prior to bidding.

By assessing the average situation set points of the auction process for more than 18,000 properties that went to auction in 2023, EIG reviewed what Material Information was available within certain time periods.

The average number of legal documents uploaded per lot last year was 13, although these became downloadable at different stages.

Just two legal documents were available 28 days prior to auction, doubling to four at 21 days before and then increasing to seven 14 days prior.

In the final seven days before the sale, there were 11 documents available to download, jumping to 12 by three days prior and then up to 13 documents just 24 hours before the event.

Due diligence delays

EIG found that on average, seven days prior to auction seems to be the optimal time that bidders start interrogating the legal packs with 86.7% of lots having documents to download.

Yet, only 67% of lots with Special Conditions had this particular document available within this timeframe. Nine in 10 lots had this available three days prior to auction, but more interesting, almost 5% of lots has Special Conditions uploaded on the day of auction.

This leaves a worryingly limited time for due diligence purposes, especially when this document is one of the must-read files that outlines aspects like completion times, additional fees and other pertinent information buyers should be aware of before making a bid.

This leaves a worryingly limited time for due diligence purposes.”

EIG’s report writes that the most important document in a legal pack is often the one that isn’t there, and that: “There are numerous reasons why the legal pack may not be complete until just before the start of the sale and it is prudent to ensure every document is thoroughly examined and any queries satisfied before placing a bid.”

National Trading Standards provides clear guidance to all property professionals as to what Material Information should be included when selling or letting a property and all prospective buyers are advised to seek legal advice prior to bidding.

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Last year finished on a high for the auction market, with 16% more properties arriving at auction, and over 13% being finally sold under the hammer, with the majority being residential stock.

Despite the increase in sales, the 2023 review by Essential Information Group (EIG) also found that the total raised only increased by 1.1%, ending at £4,829m compared to £4,779m in 2022.

As the levelling out of house prices that began at the tail end of 2022 continued, the overall annual average sale price for 2023 was almost 11% lower than previously.

The overall annual average sale price for 2023 was almost 11% lower than previously.”

When compared the final quarter of 2023 with Q4 2022, London and the North West were the only regions to see an increase in both average sale price and the number of lots sold.

Average sale prices increased just 2% in the capital, but from 30% more lots sold. In the North West, the sale price rise was more prominent, at 16% with only a 0.5% increase in lots sold.

Yorkshire and The Humber is the only region to have bucked the trend, with an 11% decline in the number of properties sold but a 17% rise in average sold prices.

The biggest average decline in sold prices was in the North East and East Anglia, with both regions experiencing a 30% uplift in lots sold, but a 14% and 16% decline in the average prices respectively.

Rooting for recovery

Director of EIG, David Leary, writes: “Amidst a backdrop of declining house prices, property auctions have seen a remarkable surge in activity, making the past year one of the most bustling periods on record.”

David Leary, EIG

He adds: “There were positive signs of recovery during Q4 which have continued into the start of 2024. While the impact of increasing interest and mortgage rates was felt industry-wide, especially in the second half of last year, the increase in demand has been outwardly noticeable too, and we look forward to reviewing how the auction market fares during this quarter.”

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NW of England agency Town & Country has reached an informal agreement with the Advertising Standards Authority(ASA)  after a complaint about one of its ads.

The ASA had received a complaint that a property was advertised on Rightmove as freehold when it was in fact leasehold.

Misleading

Ads on the Rightmove app and website said the property in Chester was a ‘Tenure freehold’, and the unnamed complainant said they were misleading.

ASA says: “Town and Country told us that had received confirmation that it was a freehold property. The seller had purchased the freehold.”

Not updated

But Land Registry had not completed the paperwork, and the freehold title had not been updated.

The seller’s solicitor provided Town and Country with documents showing the part transfer of the registered title, and this confirmed the date that the seller had purchased the freehold.

Matter closed

“Town and Country provided assurance that future ads will contain important information about the registration of the title, if, for example, it has not yet been officially registered.

“As such, we considered the matter closed,” the ASA says.

Town & Country has branches in Chester (main picture), Wrexham and Oswestry, dealing with sales and lettings. The company also runs property auctions.

Expansion plans

In 2022, The Neg reported company plans to expand its auctions business into eight new territories including London, Birmingham, Herts/Beds/Bucks, Devon, Cornwall, Cumbria, Liverpool/The Wirral and Cheshire/Staffordshire/Shropshire.

To coincide with the expansion push, the firm rebranded and re-launched its online platform backed by a major auctions tech provider.

Picture: Google Street View

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Estate agents sold a record-breaking number of properties via online auction in 2023, with each quarter outperforming all previous years, latest data from Iamproperty reveals.

The platform’s Online Auction Index reveals auction sales accounted for 1% of all UK residential property transactions for the first time – selling 9,487 properties. The figure was up by 35% year-on-year and helped its Partner Agents grow auction revenue by 32% to £33 million.

RECORD FIGURE

Capital Value raised for vendors also reached a record figure of £1.6 billion.

Overall Partner Agents sold 2,351 properties in Q4 – an increase of 26% vs Q4 2022 – with  capital value exceeding £400 million – 27% higher than Q4 2022.

This was supported by a sales peak in October, in line with the first significant reduction in mortgage rates. October was also IamProperty’s highest selling month on record, with 923 property sales driving £158 million in capital value.

The North saw the highest levels of growth in auction activity between October and December with a 35% increase in auction sales compared to the same period in 2022, closely followed by the South which saw a 27% increase.

Standout areas which saw the highest levels of growth across the quarter were Wales (+176%), the North West (+126%) and the South East (+91%).

TURBULENT YEAR

Jamie Cooke (main picture), Co-Founder of Iamproperty, says: “There’s no doubt that 2023 was a fairly turbulent year for the property market, with consecutive interest rate rises causing some peaks and troughs to transactional volumes.

“However, we saw auction hold strong throughout and it’s been fantastic to see our Partner Agents’ auction success go from strength to strength, helping them to secure listings and strengthen their pipelines whilst Private Treaty activity slowed and timescales increased.

“Whilst there’s still a lot of uncertainty in the market there’s early signs that things are beginning to move in the right direction, and we’re already seeing that last year’s demand for auction is showing no sign of slowing down.”

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The property auctions market grew 16.6% in 2023 with a 13% increase in properties successfully sold under the gavel, latest analysis from Essential Information Group reveals.

The residential sector saw a 14.7% surge in sales but more conservative growth in total with the average sale price dropping to £168,453—down 8.6% from 2022.

auctions LANDSCAPE

David Sandeman (main picture), Director of Essential Information Group, says: “The property auction market has navigated through a complex landscape marked by rising mortgage rates, the cost-of-living crisis and economic uncertainty.

“Despite these challenges, the resilience of the market is evident in the substantial 16.6% growth in the number of lots brought to sale.”

And he adds: “While the overall success rate dipped compared to the previous year, the total amount raised showed modest growth at 1.4% compared to the previous year. This dynamic reflects the motivation of vendors in the face of changing environments in both the residential and commercial sectors.”

“This decrease may be attributed to various factors, including variations in property type and size, as well as regional performance.

“Despite this, positive indicators point to a rebound in buyer confidence, especially with the gradual reduction in mortgage interest rates, setting the stage for a potentially bustling January 2024.”

STRONG START

Jamie Cooke, Co-Founder of Iamproperty, says: ““From an auction perspective it’s been a strong start to the new year, with stock levels the highest they have ever been.

Jamie Cooke, Iamproperty

“Contracts back is also very strong for this point in the month, which is indicative of further stock growth and strong inputs.”

And he adds: “It’s really encouraging to see this level of uplift in activity going into 2024, as the demand for auction continues following our highest selling year on record.

“Despite it being a challenging year from an economic perspective, appetite for auction held strong in 2023, and we sold over 9,400 properties across the year, meaning our auction transactions made up 1% of all UK residential property sales for the first time.

“Whilst there’s still a lot of uncertainty in the market, there’s early signs that things are beginning move in the right direction, which is hopefully reassuring for agents and sellers.”

Read the latest Essential Information Group analysis HERE.

Source: Essential Information Group

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Auction House raised more than £641 million in property sales in 2023 the company has revealed.

The UK property auctioneers sold 4,841 properties in the last 12 months – more than ever before in the company’s history – and a number which is up more than a fifth (22%) from 2022.

UNDER THE HAMMER

Offering both livestream and online timed auctions the group had 6,622 properties going under the hammer – an increase of 34% year-on-year.

In May 2023, Auction House offered 707 lots and sold 537 of them, achieving a success rate of 76% and raising £72.65 million – the most successful month in the 16-year history of the group.

Auction House’s corporate client base has also grown, with the commercial agency side of the business adding £48.27 million to the total raised for the company.

Oliver Prior,  National Commercial Director for Auction House, says: “With many of our Auction House Members posting record auction results and activity levels continuing on an upward trajectory there is clearly plenty of life left in the market.”

He adds: “There remains a strong appetite from local and regional investors on the buying side and our success in the room certainly reflects this.”

CONSISTENTLY STRONG

Sales have been consistently strong for the company across 2023, ranging from nearly £71 million in February to more than £62 million in December.

Jeremy Prior (main picture), Managing Director of Auction House, says: “The careful pricing strategy carried out by our network of regional auctioneers continues to reap dividends.

“There is no doubt that intimate local knowledge is enabling us to value properties correctly, which is reflected in our results and continues to set us apart from our competitors.”

And he adds: “We’re all hopeful that the property market is entering into a calmer landscape for 2024. With core inflation easing and the cost of debt beginning to fall, there’s no doubt that things are improving, and this puts us in a fantastic position to continue building on our success as we enter the new year.”

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Consumer demand for property auctions is at a record level. Year to date, Iamproperty has sold 39% more properties via auction compared to the same period last year – over 9,000. Now, one in every 100 properties sold in the UK is by Iamproperty via the modern method of auction (MMoA).

This year, the impact of consecutive interest rate rises affecting the cost-of-living, as well as mortgage rate increases, saw less than average discretionary sellers testing the market. Instead, more serious buyers and sellers not just wanting to (but needing to) transact made up the majority of movers, with a growing number turning to auction for its speed and security.

RECORD auctions

The last 12 months have been a record breaking year for auction sales but what other factors are driving the demand for auction and is the growth expected to continue into next year as the market begins to show signs of softening?

Securing a competitive sale price will continue to be a priority for both estate agents and sellers as we move into 2024.

During the last half of this year the market has seen a rise in already agreed offers being renegotiated far into the process of Private Treaty sales with some buyers pushing for a lower price during the final stages of a transaction.

COST OF LIVING

Impacted by a number of factors, from the cost of living to higher mortgage rates restricting borrowing power, this can lead to unexpected fall throughs if an agreement on price can’t be met.

Auction doesn’t carry this risk, with both the seller and buyer committed to the sale once it is agreed and no renegotiating.

I expect this to continue into next year as the cost of living and mortgage rates remain high. As a result, we’re likely to see more consumers opt for auction as their preferred method of sale due to the security it provides.

fall throughs

At the start of the second half of the year we noticed a higher than usual percentage of referrals coming through from our Partner Agents of properties which had fallen through via Private Treaty.

We understand the difficult position that fall throughs can put agents and vendors in and we’re glad that we’re able to help. Again, I expect to see this continue as we move into 2024, with auctions supporting vendors who may not have initially opted to sell this way but come to rely on it to secure their sale in the face of a fall through and prolonged transaction timeline.

This year, the average time to find a buyer increased to 66 days, up from 45 days in 2022. We will likely see more discretionary sellers re-enter the market in 2024, but for the first part of the year serious buyers and sellers will continue to make up the majority of activity. Their need to move could see more favour the MMoA as their chosen method of sale, for its fast, fixed 56-day completion timescale.

CHALLENGING YEAR

Estate Agents have had a challenging year, with the number of Private Treaty sales approximately 10% lower than this time in 2019. They’ve had to be innovative in their approach to winning new instructions and protecting their sales pipelines.

We’re pleased to see that auctions supported agents to offer consumers a choice of method of sale, meeting their evolving needs and circumstances. More agents than ever before are offering our auctions solution to their clients, and I expect this to continue as we move into next year.

As agents and sellers look ahead to 2024 it’s hopefully re-assuring to see that there is still opportunity out there and that auction can support vendors through any kind of market.

Jamie Cooke is Co-Founder of Iamproperty

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