Auction House has reported a 13% rise in the number of lots sold this year compared with 2021 but warns there are signs the market may be starting to tighten.
The group has sold 1,606 properties from the 1,957 offered to date in 2022 – an 82% success rate – and raised more than £251.2m. It is the first time the company has exceeded £250m within the first five months of the year.
Auction House managing director Jeremy Prior said: “This is yet another incredible set of figures from our teams around the country. It also reflects the time of year when property buying and selling tends to be at its peak.
“However, there are some signs the property market as a whole is starting to soften. A toxic combination of factors, including the increased cost of living with its associated rising inflation and interest rates, together with the international impact of the crisis in Ukraine means there is now a noticeable air of caution amongst buyers.”
He added: “This means vendors will have to take on board suitably realistic valuations of their properties over the coming months in order to attract the attention of potential purchasers.
“We now know that mortgage lending fell by more than a third in April, and there are currently reports that mortgage valuations are being downgraded, which has led to several agreed private treaty sales falling out of bed. Traditional unconditional auctions are obviously less susceptible to this problem, as our sales take place on the fall of the gavel.”
Prior said the group had received a “steady stream” of corporate lots which were appraised for sale on the private market at the end of last year but had failed to sell.
“But that’s not to suggest that properties are only arriving at auction as an option of last resort. Over the past few years, the general public has become much more aware of the wide variety of lots that sell well under the hammer.
“Such properties include those for refurbishment, redevelopment or extension, or with issues such as being unmortgageable, with a short lease or adverse history.
“So, while the ‘froth’ may have gone from the property market as a whole, and the year ahead looks more challenging, we are confident the traditional unconditional auction method of sale will still be able to punch above its weight.”
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