A ‘lot’ of sales at plummeting prices

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.”