April Property Auction
Market Update

Market Continues To Perform Well This Month

What happened since the residential property auctions in March 2024? In this monthly update, we will take a closer look at current trends in sales volumes, percentages sold, amounts raised and other interesting trends in the residential auctions market.

Number of lots offered

February 2024 was a busy month for the residential auctions, with strong levels of lots offered, sales rates and amounts raised. So the burning question for many was whether that busy market would continue into March.

The simple answer is yes, it did! The 2,887 properties offered at sales we track in March was broadly in line with February and, just as interestingly, similar to the volume of properties a year ago.

Who held sales? Which were biggest?

As might be expected given the time of year all the main auction houses held sales this month. Barnard Marcus raised £31.4m from offering 262 lots. Savills raised £43.9m from offering 182 lots. Allsop Residential offered 285 lots and raised £56m in the process. The Auction House Network raised £88.2m from 560 lots spread over several events in London and regionally.

Percentages sold

This month almost twice as many lots were offered online as at live/live steamed events but the sales rate was, uncannily perhaps, almost identical whichever way a property was offered.

The percentage of properties sold in March fell very slightly to 70.84% on average. This was the lowest amount for the last five months. But, all things considered, it is still a very satisfactory sales rate. Most sales managed to sell around two thirds of their lots at least. Even the poorest performing sale (which was hardly poor by any standards) sold 58% of their lots offered.

Amount raised

The amount raised at the sales we track was £406.2m approximately. This was a strong amount. It was slightly ahead of last month’s £401m and the fourth highest amount raised over the last 12 months.

Average amount per sale

The average sales price of an auction property in the UK in March 2024 was around £137,000 – a slight fall from the previous month and a shade under half the national average property price of £281,000.

Summary and Comment

There were two key events in March which held potential to change the fortunes of the property market but, in the event, they had very little impact.

Ahead of the Budget on 6 March it was rumoured new home buyer incentive schemes could be introduced which would boost the property market. But this didn’t happen. A small reduction in Capital Gains Tax and removal of holiday lettings relief might persuade a few more landlords the time is right to sell.

Likewise, the Bank of England’s decision to hold the interest rate steady likely did nothing to impact the market.

Looking ahead one event, almost certain to happen this year, is the next general election. Many may ask whether a pre-election period is a good or bad time to buy or sell.

Speaking ahead of their next sale on April 16 Christopher J.O. Glenn, Managing Director of Barnard Marcus, offers an expert insight on the topic of elections and the property market. He says: “Clearly the market sentiment is far more positive than experienced in the middle to later part of 2023, with buyer confidence buoyed along by the mortgage market aggressively competing for your business regardless of what the Bank of England do with rates.

“We don’t know precisely when the general election will take place, but we know it will be at some point this year and this is an important factor to consider if you are looking to purchase property right now but considering if a ‘wait and see’ approach would be better. Having been an auctioneer at Barnard Marcus for 35 years this year, I have watched the reaction in our area of the property market over pre and post-election periods for many years. One theme has always come through in these periods – people who wait to see the outcome of an election before making a property purchase generally lose out and end up paying more after the event regardless of the outcome. Yes, in the lead up to an election the incumbent government normally tries to do all they can to invigorate a feel good factor but critically, following the election the new government always wants to steady the ship and invariably does nothing to upset the markets, not least the property market.

“What normally happens therefore is a slight lull in activity before the event so prices stabilise or stay static, after the event there is a degree of re-engaging, the supply and demand factor comes into play and prices people have to pay for the same asset generally rise. In conclusion, don’t delay, engage and bid to buy today!”

Check out our monthly updated statistics below, courtesy of the Essential Information Group (click on the key colours to highlight / dehighlight):