A growing number of vendors are selling their homes under the hammer in a bid to sell in a tricky market, new data suggests.
Fresh figures provided by Auction House shows that the company recorded the best May in its 16-year history, with the number of lots offered for sale last month some 29% higher than the same period last year, while the volume of properties sold increased by 16% year-on-year.
Auction House offered 707 lots in May, with 537 of them selling raising £72,650,604 – 76% sales success rate – the highest ever monthly total.
The slowing housing market appears to have made the property auction sector more appealing to some sellers, especially those coming to the end of a fixed rate mortgage agreement, following the recent surge in borrowing costs.
Auction House’s MD, Jeremy Prior, said: “What these figures prove is the remarkable confidence buyers have in the medium- to long-term property market. Although this is not to say there aren’t current challenges. Further hikes in the base rate are almost inevitable and the market is pricing in even more expensive mortgage rates this year.”
While there has been an increase in the number of lots offered, there has been a “marked reduction” in the numbers of registered bidders dropping by more than 30% in some parts of the country, Prior explained.
He added: “This means that those bidders still buying are serious and motivated [each of them hoping that there is now less competition] and have confidence in the future of the housing market.
“As in previous difficult times there appears to be a ‘ripple effect’ taking place, with the South of England initially experiencing more challenging market conditions, which we suspect may spread northwards over the coming months.”
