The number of properties offered at auction across the UK increased by more than a third in June, with sales and the total value raised also rising strongly, according to the Essential Information Group (EIG).
A total of 4,008 lots were offered during the month, up 35.3% on June last year. Sales increased by 31.3%, while total funds raised climbed 33.5% to £519.7m.
However, the increase in stock outpaced buyer demand, resulting in the national success rate easing to 65.3%.
Both the residential and commercial sectors recorded strong year-on-year growth in the number of lots offered, sales completed and funds raised.
Regionally, the South West and Yorkshire and the Humber were among the strongest performers over the April to June period, recording substantial growth in activity and sales. London also posted a strong quarter, with both the number of lots sold and the total value raised increasing by more than 20% year on year.
Scotland also saw another sharp increase in auction activity, although success rates remained well below the national average.
EIG suggested the increase in properties coming to auction may partly reflect landlords reviewing their portfolios following the introduction of the Renters’ Rights Act in May. It added that activity remained healthy heading into the summer, supported by a steady flow of stock and sustained buyer demand.
Stuart Collar-Brown, president of NAVA Propertymark, said: “The UK’s auction market continues to deliver positive results, with lots increasing by 35% year on year and sales increasing by 31%. This shows that both buyers and sellers continue to see the value of auctioning their property as they seek certainty in a turbulent economic climate.
“Regional growth also remains strong, with the South West and Yorkshire and the Humber delivering positive results and helping to drive the market.”
Collar-Brown added that legislative changes affecting the property sector may be influencing commercial sales volumes and values, as investors favour longer-term leases over the now-defunct assured shorthold tenancy model in the residential market.
“As long as properties are priced realistically to create a competitive bidding environment, it is encouraging to see the auction sector continuing to deliver growth,” he said.
