The UK auction market continued to grow in May, although a faster rise in stock levels than buyer demand led to a slight fall in success rates.
New data from Essential Information Group (EIG) shows that 3,988 lots were offered at auction during May, up 6.1% compared with the same month last year. Sales volumes also increased, rising 3.4%, while total funds raised remained broadly stable at £526.9m.
However, because supply increased faster than sales activity, the national success rate slipped to 67%, highlighting a more competitive environment for sellers.
Residential auctions continued to drive overall market performance, with the total value of residential property sold increasing by 2.1%. The commercial sector also saw more lots sold, although the total value raised declined, suggesting investors are targeting smaller and more value-focused opportunities.
STRONG PERFORMANCE
Over the rolling March-to-May period, Yorkshire and The Humber and the South West were among the strongest performing regions, recording substantial growth in lots offered, sales completed and total funds raised. London also posted a strong performance, while the West Midlands maintained positive momentum.
Scotland recorded the largest increase in activity levels, although success rates remain below the national average.
David Sandeman (main pixture, inset left), MD of EIG, said the market remained in good health despite signs that rising supply was beginning to influence performance metrics.
He says auction activity continued to run ahead of last year’s levels, with growth in both stock volumes and sales transactions evident across much of the UK. However, he noted that the increasing volume of property coming to market was placing some pressure on success rates.
Sandeman adds that activity levels remained healthy heading into the summer months, supported by a steady flow of stock and continued buyer demand.
SELLERS’ MARKET
Stuart Collar-Brown (main picture, right), President of NAVA Propertymark, said: “While the headline growth in auction activity is undoubtedly positive, the most interesting takeaway is the widening gap between supply and demand.
“Lots offered increased by 6.1%, outpacing the 3.4% rise in sales volumes, which has inevitably put pressure on success rates.
“This suggests the market is becoming more competitive for sellers, even as buyer appetite remains resilient.”
