Brexit uncertainty and retail gloom created a two-speed UK property auctions market in December, with residential volumes up slightly compared with the previous year while commercial volumes fell to their lowest level in a decade.
Figures published by auctions data specialist Essential Information Group showed that the number of residential lots offered by auction houses in December stood at 2,786 – a 1.2% increase on December 2018. The total number of residential lots sold increased by 6.7% to 2,151, and the total amount raised by residential property sales increased by 3.4% to £307.7m.
However, EIG said that the amount of commercial property put up for sale and purchased at auction fell to the lowest level since it started reporting this data in the same format in 2009.
The total number of commercial properties offered at auction in December stood at 537, a 6.1% fall compared with a year earlier. The total number of commercial lots sold at auction was 396, 11% lower than the same month in 2018.
Even more dramatically, the total amount of money raised by commercial property sales at auction sank by 24.4% on the previous year to stand at £118m.
“Although the falls witnessed across the past year are not insignificant, it must also be emphasised that the average sale rates have remained largely stable, in the mid-seventies, throughout,” said EIG founder David Sandeman.
“It has undoubtedly been a challenging year for the industry. However, now that we have a majority government and a clearer path for Brexit, backed up by continued low interest rates, we would expect to see an improving market through 2020, with renewed confidence amongst buyers and sellers alike.”
