AUCTIONnews
UK RESIDENTIAL PROPERTY AUCTIONS ANALYSIS Auctions on the up! talks to David Sandeman of EIG about lots and sales – both increased in the fi rst half of 2011. Perspective
As we enter the second half of 2011 we can reflect on the first half of the year and see how it measures up against same period over the last six years. David Sandeman, founder of Essential Information Group (which monitors the sale of every single property at auction in the UK), assesses the key auction statistics and gives his insight on the current condition of the residential property auction market and how it might fare in the remainder of 2011 and beyond.
Lots offered
As one would expect the number of lots offered at auction peaked at the height of the property boom in 2007-2008 and the subsequent market correction saw a dramatic fall in 2009. A degree of stability returned in 2010, and the graph below shows us that 2011 has brought with it renewed confidence and growth in the market. An increase of over seven
GRAPH 1 RESIDENTIAL LOTS OFFERED IN H1
16,000 15,000 14,000 13,000 12,000 11,000 10,000
2006 2007 2008 2009 2010 2011
Nowhere near the glory days of 2007-8 but improving. GRAPH 3
PER CENT SOLD FOR RESIDENTIAL LOTS IN H1
80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0%
2006 2007 2008 2009 2010 2011 Sales percentages are also improving, creeping past 2011. 50 SEPTEMBER 2011 PROPERTYdrum
12,000 11,000 10,000 9,000 8,000 7,000 6,000
2006 2007 2008 2009 2010 2011
The first rise in sales at auction since 2007. GRAPH 4
AMOUNT RAISED FOR RESIDENTIAL LOTS IN H1
£2.0 £1.8 £1.6 £1.4 £1.2 £1.0 £0.8
2006 2007 2008 2009 2010 2011 Values are clearly well down on 2007 but creeping up.
per cent resulted in 12,156 residential lots being offered in H1 2011, as vendors are becoming ever more aware that that correctly priced lots have a great chance of selling at auction.
Lots sold
Again the number of lots actually sold rose throughout the mid noughties up until the peak of the current property cycle in 2007. The graph shows how the number fell away by around 27 per cent between 2007 and 2010 to just 8,138 lots – the lowest number of residential lots sold at auction since 2003. However this is a comparatively small drop when compared with residential transactions recorded by the Land Registry, where in the same period the volume of sales declined by 50 per cent. The good news is that in H1 2011 residential auction sales rose by over nine per cent to 8,904. This indicates that vendors have become more realistic with their reserves whilst auctioneers have become more selective with their entries, and buyers are increasingly seeing the opportunities that auctions present.
GRAPH 2 RESIDENTIAL LOTS SOLD IN H1
Billions
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