Property auction supply increased in September but sales failed to keep pace as a greater choice of stock put pressure on success rates.
Figures from Essential Information Group show 4,903 lots were offered across the UK during the month, 5.7% more than a year earlier.
However, the number of properties sold fell 2.5% year-on-year, with the national auction success rate easing to 65.9%.
The total raised through auctions also dropped 12.8% to £593.7m. Residential supply was stronger, with the number of lots offered increasing 8.1%, although sales remained slightly below their level a year earlier.
SUPPLY PRESSURE
David Sandeman, Managing Director of Essential Information Group, says the market continues to see a healthy flow of stock following the quieter summer period.
London was among the stronger markets over the rolling three months from July to September, with lots offered increasing 10.6% and sales rising 15.5%.
Scotland also recorded a substantial increase in sales, while the South West and Wales remained ahead of last year.
Conditions were softer in the North East and the North West and South East Home Counties, where sales volumes and the amount raised declined year-on-year.
Despite September’s weaker sales figures, auction activity over the past 12 months remains ahead of the previous year.
SELLER EXPECTATIONS
Over the 12 months to September, residential lots offered increased 11.3% while the number sold rose 9.1%.
Matt Burrows, NAVA Propertymark Advisory Panel member, says: “It is encouraging to see the continued growth in auction activity, with residential lots offered increasing by 11.3% and lots sold by 9.1% over the 12 months to September.
“However, the latest monthly results show that growth in supply is not being matched by sales, reinforcing the importance of realistic seller expectations and sound professional advice.”
Burrows says technology is increasingly supporting the auction sector but argues traditional valuation and pricing skills remain critical.
He adds: “Technology can support how we deliver our services, but professional judgement remains central to attracting buyer interest and achieving successful outcomes for sellers.”
