More than £4bn of property was sold at auction last year, up by almost a third on a challenging 2020 and the highest volume traded by the sector since 2017.
Year-on-year, across the whole industry, Essential Information Group figures for 2021 show a 7.8% growth in lots offered to 24,469 and an 11.8% growth in lots sold to 19,748. This equates to a success rate of more than 80%. The total for the year was up by 29.8% to £4,261m. This improvement is all the more encouraging in the context of the sector’s performance over the past five years (see chart).
After a strong 2016 (£4,685m sold), the amount raised at auction declined from 2017 to 2020. This coincided with uncertainty over the UK’s withdrawal from the EU following the 2016 referendum and the onset of the pandemic putting a stop to in-room auctions in 2020.
The five-year picture shows that residential has recovered most strongly (boosted by the pandemic stamp duty holiday). Commercial still has some ground to make up, despite a 30% increase on 2020 revenues.
Last year was the first full year of online-only auctions, bar a handful of hybrid in-room/online sales held by a small minority of auctioneers when restrictions were lifted. The strong performance is likely to further cement the sector’s commitment to continuing with largely online sales.
The latest figures also highlight the strong end to the year, with December 2021 revenue up 19.2% over December 2020 to £520.9m. Residential revenue rose by more than 14% to £377.1m. Commercial revenue rose by more than 34% to £143.8m.
EIG managing director David Sandeman said his team had been entering some bumper catalogues for upcoming auctions. “The signs are that 2022 will be another busy year for the industry,” he said.
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