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.”