February Property Auction Market Update

A Slower Market, But Not Unexpected…

What happened at the residential property auctions in January 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

As might be expected for January and the usual post-Christmas slump the number of lots offered was low this month. Only just over 820 lots were offered at the auctions we track this month. This compared with over 3,000 lots each in November and December last year. Notably, it was still significantly higher than the 620 or so lots offered in January 2023 though.

Numbers of lots offered were pretty much evenly distributed between online and live or live streamed sales.

Who held sales? Which were biggest?

Again as is not untypical for January each year the number of sales held was relatively low with many auction houses choosing not to hold a sale this month.

Allsop Residential, Savills and Barney Estates held the largest individual sales by lot numbers with the Savills sale raising around £48m, nearly half the total amount from all sales this month. Interestingly, this was their first ever January auction, which may indicate both seller demand and a degree of confidence in the auction market at the moment.

One auction house held a sale with only one lot, something of a novelty.

Percentages sold

Despite the low numbers of lots offered sellers and auctioneers alike will likely have been more than happy with the chances of selling this month. The percentage of lots sold at auctions this month was strong, and in line with the stronger months over the last year, at just over 73%.

The chances of selling this month were pretty much the same whether the auction was held online or at a live/live streamed event. However individual sales had very variable results ranging from around 30% to around 90% of properties offered sold.

Amount raised

The amount raised at the sales we track was £97m approximately. This was the lowest amount raised for some considerable time, though perhaps not unexpected for this time of the year. Of interest however, is that it was more than double the amount raised in January last year.

Average amount per sale

The average sales price of an auction property in the UK in January 2024 was around £119,000 – a slight fall compared to the last few months. Notably, although it might not be that significant, properties sold at live/live streamed events sold for 40% more on average than those sold online.

Comment

Head of Savills auctions, Robin Howeson commented: “Yesterday’s auction marked an important milestone for Savills auctions business with it being the first ever sale to be held in January. Following a record breaking 2023, it was evident that sentiment hadn’t slowed with a success rate of 78% being achieved. On the day there was a good level of buyer confidence, most likely aided by a stabilising of interest rates, and it’s clear to see that there’s a year-round calling for auctions.”

He added: “Our bumper catalogue of over 250 presented plenty of opportunity and attracted a competitive number of bidders, especially on quality lots in sought after locations. While residential stock sold well, there was a clear appetite for high yielding, mixed use and commercial opportunities, with many well priced lots achieving in excess of their guide prices.”

Summary

There are perhaps two key takeaways from the residential auction results for January 2024: Firstly, the market was much quieter than in late 2023. But this broadly reflects seasonal trends and is only to be expected. Secondly, however, the market was significantly busier than the same time last year – something that perhaps shows a quiet confidence in the market.

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