The UK’s property auction market showed signs of cooling in June, with figures pointing to a more selective approach from buyers amid ongoing economic uncertainty and tighter financing conditions.
According to data from Essential Information Group (EIG), the number of lots offered across the UK dipped by 1.6% year-on-year to 2,962, while the number of lots sold dropped by 6.3% to 1,993.
The overall success rate declined from 70.7% to 67.3%, highlighting a softening in demand and a more cautious stance from investors and end-users alike.
Total funds raised through auctions fell sharply, down 9% to £389.2 million compared with June 2024. While residential supply remained broadly stable – up 0.4% – the number of homes sold slipped by 4.1%.
COMMERCIAL SECTOR HIT HARDEST
The commercial sector was hit harder, with lots sold down 21.8% and the total value raised plummeting by 41.3% year-on-year.
David Sandeman, Managing Director of EIG, says: “The figures suggest that buyers are becoming increasingly selective, particularly when it comes to commercial investments.
“While residential supply is holding up, weaker conversion rates indicate that pricing and location are now under closer scrutiny.”
ACROSS THE UK
Regional performance was mixed. The East Midlands, North-West Home Counties, and Wales stood out with strong levels of activity and capital raised.
However, London and the South-East experienced broad-based declines, particularly within the commercial auction space.
Scotland and Northern Ireland presented a more uneven picture, with robust results in certain areas offset by sluggish take-up elsewhere. Yorkshire and The Humber performed well in the commercial segment, but residential weakness weighed on overall figures.
AUCTION MARKET SOFTENING
Stuart Collar-Brown, NAVA Propertymark President, says: “These latest results suggest that buyers are adapting their behaviour to the latest developments in the property market overall, with the auction market softening slightly.
“However, strong growth can be seen on a regional level, especially in the East Midlands, North-West, and Wales, while Yorkshire and The Humber produced a strong quarter result in the commercial sector.”
And he adds: “Propertymark members reported that they believed 2025 would present a tougher market due to stamp duty changes, and this report could be an indicator of these predictions starting to have an impact. As buyers continue to adapt to the latest tax changes, hopefully, results produced later in the year will demonstrate more positive developments.”
