LETTING & ESTATE AGENT

Figure show growth in UK property auctions

Figure show growth in UK property auctions

The number of properties sold at auction is increasing at the fastest rate for years, according to recently published statistics.

Figures released by lender Auction Finance show a 78% year-on-year increase in sales it financially supported in 2014.

The total amount it advanced throughout 2014 leapt by 133% compared to the previous year.

According to figures, regions with the biggest increases in lots sold were East Anglia (400%) and the West Midlands (200%), while the South West and South East also reported a significant uplift (171%).

The average bridging loan taken out to buy property at auction now stands at in excess of £98,000, up from £75,000 in 2013.

Terraced houses were the most popular investment property type according to Auction Finance’s figures, with 41% of properties funded falling into this category. Semi-detached properties and flats also proved popular.

“The days of buying or selling a house through an auction being seen as last resort, are fast becoming a thing of the past,” said Scott Hendry, director at Auction Finance. “And with most properties sold at all UK auctions being completed and exchanged within four weeks – about ten weeks quicker than properties sold  through an estate agent – the popularity of property auctions is only set to increase.

“We’re seeing a significant increase in the appetite for property purchases at auction; auction rooms are better attended and we saw a number at capacity throughout last year.”

Auction House, one of the UK’s biggest property auction houses, backed the latest statistics, after reporting a record year in 2014, with more than 3,000 lots sold, a 17% increase on its previous best.

Reports from Essential Information Group (EIG) also portray a promising outlook for the industry following a record year for residential auction sales in 2014 which surpassed the previous high recorded in 2007.

“The total amount raised through residential property sales last year broke through the £3bn mark for the first time in seven years,” said David Sandeman, managing director of EIG, “A fantastic achievement for the industry.”