AUCTIONnews
Amount Raised The amount raised at auction peaked in 2007 with over £5.89 billion realised. The house price crash during 2008 saw that figure fall by 36 per cent to £3.76 billion and through 2009 and 2010 further reductions were recorded, albeit by lesser amounts. Statistics show that auction receipts in 2011 actually rose 1.9 per cent on 2010, up to £3.36 billion for the year. The reason for the upturn is largely down to the substantial increases seen in lots sold during quarters 2 and 3, and it gives another indication of a stabilising market.
Per cent Sold Interestingly, the auction sale rate has fluctuated more than any of the other metrics measured. From a 16 year low of 64.7 per cent in 2008, rates recovered in 2009 before falling back again in 2010. Stability returned in 2011 with 74.1 per cent of properties selling under the hammer and this is only marginally down on the long term average of 75 per cent. The fluctuations seen in the per cent sold are as a result of the challenging and changing market conditions that have occurred over the last 3 to 4 years, and one would hope that the improvements made last year continue into 2012 and beyond.
Conclusion In 2010 we saw signs of a stabilising market, as the big falls witnessed in 2009 through all sectors of the housing market were eased and confidence slowly returned to the auction rooms. 2011 built on that, and has in fact yielded the strongest set of auction figures for 4 years. This against a backdrop of continuing economic turmoil in Europe and a seemingly stagnant open market in the UK (Land Registry shows a 3.4 per cent drop in property transactions during the first three quarters of the year). The signs are certainly encouraging and show that auctions remain an attractive option for both buyers and sellers alike, and one would hope that the positive trends continue in 2012.
Regional Analysis In addition to the national auction review, we have also evaluated the metrics in each of the regions to see if variations exist across the UK (please note we have excluded Northern Ireland and Scotland due to incomplete data sets). The graphs are very interesting in that they show some distinct
contrasts between the regions when comparing 2011 to 2010. For example, double digit decreases in lots offered are evident in both London and the North West Home Counties, and conversely double digit increases are seen in Yorkshire and The Humber and the North West. This filters through to the amounts raised at auction, where London property realised just over £735m – an 18 per cent reduction on the £897m realised in 2010. All other regions saw auction receipts increase, with the north of England making the most substantial gains. The per cent sold graph shows increases throughout the majority of the UK, further enhancing the impression of a stable and resilient marketplace.
Conclusion
The open market, made up of private treaty estate agency sales, reports on strong sales and results in London and the South-East whilst regional sales struggle to keep up. Interestingly in the auction market we can see the opposite, with London and the Home Counties perhaps surprisingly recording a fall in lots offered and amounts raised compared to 2010. The graphs show that the regions outside of London have had a very productive year, proving that auctions are a viable and effective means of buying and selling property across the regions.
‘Regions outside of London have had a productive year.’
58 FEBRUARY 2012 PROPERTYdrum
LOTS OFFERED
25% 20% 15% 10% 5% 0% -5% -10% -15%
PER CENT SOLD
30% 25% 20% 15% 10% 5% 0% -5%
TOTAL RAISED
25% 20% 15% 10% 5% 0% -5% -10% -15% -20%
East Anglia
East Midlands London
North East North West
North-West Home Counties South-East Home Counties South West Wales
West Midlands Yorkshire and The Humber
East Anglia
East Midlands London
North East North West
North-West Home Counties South-East Home Counties South-West Wales
West Midlands Yorkshire and The Humber
East Anglia
East Midlands London
North East North West
North-West Home Counties South-East Home Counties South-West Wales
West Midlands Yorkshire and The Humber
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