Auctions raised £192.6m in May, despite limited opportunity for auctioneers to inspect properties and arrange viewings before restrictions were eased.
The latest data from Essential Information Group shows that receipts were down just shy of 50% year-on-year, compared with a fall of 56% in April.
The commercial auction sector showed some encouraging signs, with the total raised falling 40% year-on-year to £65.7m.
The commercial sector also notched up an impressive 83% success rate, compared with 70% for the same month last year. However, it is important to note that the online sales process gives auctioneers a much stronger indication of how bidders will behave on the day than in-room auctions, which informs their decision to withdraw lots that have failed to attract interest. This is because investors must register their interest and are usually required to place deposits against specific lots before the event in order to bid.
Allsop commercial, for example, now allows bidders to deposit £10,000 for each lot they are interested in to encourage bidding across multiple lots. This replaces the 10% deposit they initially required for investors to take part in their online auctions at the start of lockdown.
“The process is now easier from a cash flow perspective, and it commits them to sending the balance within 24 hours,” said Allsop auctioneer and partner George Walker.
Allsop was the main contributor to the May commercial total, raising £38m on 19 May with an 87% success rate. It sold 41 lots from 47 offered, having withdrawn 11.
Residential also saw its success rate improve, with 78% of lots finding buyers. The sector raised £126.9m, down 53.7% year on year.
EIG managing director David Sandeman said: “Recently, we saw restrictions on estate agents and auctions easing so that inspections and viewings are now possible, subject to complying with Covid-19 regulations. This will in turn lead, I believe, to further recovery in June and the months following.
“Virtually every auctioneer has now held at least two auctions since lockdown and have found a robust and viable way of conducting room auctions online given that it may be some while before we can return to the room.”
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