The number of property auctions taking place in July 2019 was the lowest for 16 years, as political uncertainty over Brexit continued to dampen sentiment.
According to property auctions database Essential Information Group, just 107 property auctions took place across the UK in July, the lowest number to take place that month since 2003.
EIG calculated that the number of auctions taking place in July was 16% down on the previous year, and 43% down on the record 189 auctions held in 2011.
With fewer auctions taking place, the number of lots offered and lots sold also fell by around 7% compared with last year, while the total raised at auction fell by 5.8% to £445.5m. However, EIG reported that the proportion of property selling at auction remained steady at 72.5%.
The gloom was echoed by the UK’s largest auction house, Allsop, which this week published a review into the performance of its commercial auctions business during the first half of the year.
Allsop reported that it had sold a total of 412 lots during its four commercial auctions held during the first half of 2019, down 17% compared with the same period a year earlier.
Allsop said that the total value raised during the half-year stood at around £300m, down 7% on the previous year.
However, the auctioneer said that the average price of the lots it sold rose to £716,400 – higher than the three previous years.
“Although economic and political uncertainty remain, there is still a strong appetite for commercial property assets, particularly in this low interest rate environment, which is unlikely to change in the short to medium term,” said George Walker, partner and auctioneer at Allsop.
“Investors are looking to reduce risk. With high street woes in mind, they are diversifying their portfolios, with office properties and alternatives in the spotlight, and focusing on high-quality assets with long-term agreements with resilient occupiers.”
