Ahead of the stamp duty holiday deadline of 30 June, there has been a sharp rise in the number of buyers acquiring properties under the hammer in recent weeks, according to iamsold.
Around 22,000 bids were placed though iamsold between January and the end of May, which is up by 205% compared with the same period last year and 146% up on the corresponding period in 2019.
Aside from an active market in the run-up to the stamp duty deadline, Jamie Cooke, managing director at iamsold, is hoping that the increases also indicates a growing appetite for auction properties and this method of sale.
The upward shift in competitive bidding is also driving up sales, with iamsold having sold 2,159 properties so far this year raising £345m in capital value for sellers.
Cooke said: “We’re extremely encouraged by buyer interest in properties, and it indicates that there’s a voracity in the auction market that hasn’t yet been seen. The demand for homes isn’t slowing down, however, the number of properties available by private treaty is.
“Much like the rest of the market, our average sale price is increasing in line with this demand, however, we’re not expecting the slump that some are predicting once the stamp duty holiday comes to an end. Our data shows us that buyers are actively seeking alternatives that not only could offer them a good investment, but a digital-buying process that is similar to those that they are familiar with in their everyday lives.
“We’re in the middle of a perfect storm as we have a greater range and number of properties now available for auction, appealing to more buyers to meet the demand that is not being met by the wider housing market. The expectations of consumers align perfectly with the benefits that the Modern Method of Auction is able to offer – speed, security, transparency, and an accessible bidding process that drives results.
“It’s a great time for estate agents to consider adding auction to their portfolio of services as a way to win new instructions and provide their clients with much needed choice.”