The UK property auction market continued its strong start to the year in June, with activity rising by more than a third as increasing numbers of landlords appeared to reassess their portfolios following the introduction of the Renters’ Rights Act.
According to the Essential Information Group (EIG), 4,008 lots were offered across the UK during June, a 35.3% increase on the same month last year. Sales rose by 31.3%, while the total value of property sold climbed 33.5% to £519.7m.
Although supply continued to outpace buyer demand, reducing the national success rate to 65.3%, both the residential and commercial sectors recorded year-on-year growth in the number of lots offered, properties sold and total funds raised.
The strongest regional performances over the April to June period came from the South West and Yorkshire and the Humber, while London also enjoyed another strong quarter with both sales volumes and funds raised increasing by more than 20%.
RENTERS’ RIGHTS ACT
David Sandeman (main picture, inset left), Managing Director of Essential Information Group, says the increase in stock could partly reflect landlords reviewing their investments following the introduction of the Renters’ Rights Act in May.
He said: “Overall, the auction market continues to build on the momentum seen throughout the first half of the year. While higher stock levels are continuing to place some pressure on success rates, the increase in activity could also reflect landlords reviewing their portfolios following the introduction of the Renters’ Rights Act in May. As the market moves into the summer period, activity levels remain healthy, supported by a steady flow of stock and sustained buyer demand.”
Stuart Collar-Brown (mai picture, inset right), President of NAVA Propertymark, says the figures demonstrated that buyers and sellers continued to value the certainty auctions provide during uncertain market conditions.
He adds that legislative changes affecting the private rented sector may also be influencing investor behaviour, with some favouring commercial property and its longer-term leases over residential investments as the market adapts to the post-Renters’ Rights Act landscape.
