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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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