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UK RESIDENTIAL PROPERTY AUCTIONS ANALYSIS


Auctions on the up! with David Sandeman of EIG.


Introduction As we move into 2012 we can reflect back on 2011 and see how property auctions have fared in these challenging market conditions. David Sandeman, founder of Essential Information Group (which monitors and collates information on every property auction held in the UK), offers his analysis of the UK property auction market. The graphs and commentary below are for the residential and commercial market combined.


Lots Offered The number of lots offered at auction rose throughout the noughties, reaching a peak in 2007 and 2008. The subsequent market correction in 2009 resulted in a significant 21 per cent fall in lots offered, however this must be measured against the dramatic fall of 49 per cent in sales recorded by the Land Registry. This demonstrates the resilience of the auctions in testing times. Since then it is encouraging to see that volumes


GRAPH 1 LOTS OFFERED


12,000 10,000 8,000 6,000 4,000 2,000 0


Q1 Q2 Q3 Q4


2011 Volumes top 2009 and 2010 – moving in the right direction. GRAPH 3 Millions


AMOUNTS RAISED


£1,750 £1,500 £1,250 £1,000 £750 £500 £250 £0


Q1 Q2 Q3 Q4 In 2011 the amounts raised are still way off the peak in 2007.


2007 2008 2009 2010 2011


85% 80% 75% 70% 65% 60% 55% 50%


Q1 Q2 Q3 Percentage of properties sold went well – until Q4. PROPERTYdrum FEBRUARY 2012 57 Q4


2007 2008 2009 2010 2011


10,000 8,000 6,000 4,000 2,000 0


Q1 Q2 Q3


Another very positive trend as lots sold increase. GRAPH 4


PERCENT SOLD Q4


discusses the auction market in 2011


have been steadily increasing and in every quarter last year we saw a rise in lots offered when compared with the previous year – a positive trend that began in 2010. Confidence has clearly returned to the market, with competition between auctioneers to secure correctly priced lots at a healthy level.


Lots Sold The number of lots sold at auction had been decreasing since the height of the property market in 2007; however this decline has been arrested and in 2011 we actually saw a significant rise in properties sold under the hammer. The big increases occurred in quarters 2 and 3 (18 per cent and 13 per cent respectively), and the overall figure of 24,436 lots sold in the year was nearly 10 per cent up on 2010. A clear indication of vendors being more realistic with their reserves and of buyers returning to the market in search of competitively priced lots and the opportunities that auctions present.


GRAPH 2 LOTS SOLD


2007 2008 2009 2010 2011


2007 2008 2009 2010 2011


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