January Property Auction Market Update

Market Rebounds in December

What happened at the residential property auctions in the final month of 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 both in the last month of the year and in 2024 as a whole.

Number of lots offered

In November 2024, after a busy few months, the auction market slowed down notably. The number of lots offered was the lowest all year apart from the traditionally slow months of January and August. They were 20% or so below the long term average.

Many will have wondered if this was the start of a slow down in the residential auctions market. However it looks a little like November was a blip. The auctions picked up again in December. Just over 3,200 lots were offered at the auctions we track. This was around 10% above the long term average over 2024 and 5% over December last year.

The auctioneers had a busy month, packing almost 40 sales into just three weeks of selling time – and this may account for the increased lot numbers. Allsop hosted another two day sale. This is something they plan to repeat every month in 2025 (apart from the normally quiet January and August). This alone perhaps say something about the enthusiasm of buyers and sellers right now.

Percentages sold

As with lot volumes, in November 2024 sales rates dropped off at the auctions we track. They dipped to around 67%, which was a noticeable drop compared to most months in 2024.

Sales rates rebounded in December. Just over 72% of all lots offered in residential auctions sold. This was just slightly ahead of trends over the last year.

Sales rates across individual auctions were strong. The poorest performing auctions sold around 40% of their lots and a handful (mainly smaller sales) sold all the lots they offered.

Amount raised

The total amount raised from properties sold at auction in December was circa £434m. This reversed the decline in November and made December the fourth best month of 2024 in terms of auction receipts.

December’s receipts were around 11% over the monthly average over 2024 and around 20% up on the same month last year.

Average amount per sale

It is almost always the case that auction buys represent good value compared to the wider sales market. This continued to be the case in December 2024. The average price of a house sold at auction in the UK in December was almost exactly two thirds the average UK property price of £290,000 according to UK HPI figures.

Summary

Lastly, let’s try to summarise the residential auctions market in 2024 and look ahead to 2025.

Overall, 2024 has been characterised by political and economic uncertainty. During the year it has looked at times (and particularly in November) that the property market might reflect this and embark on a downward trend. However, December reversed a doubtful November and overall the market was strong. Auction lots, sales and receipts were ahead of the 2024 average and, interestingly, ahead of December 2023 too. It was a pretty good month ending a pretty good year.

All in all, 2024 has been a strong year for the residential auctions market. At the auctions we track, over 35,000 properties were offered, around 70% sold and around £5,121m was raised.

So what might the future hold for the residential auctions market?

The wider property market is uncertain. House prices are still increasing, if slowly, in most areas. But buyers are cautious. Properties are lingering on the market. Despite a better outlook for mortgage rates buyers are likely wondering about issues such as tax rises, living costs and the employment market.

However, history tends to prove that even in an uncertain property market the auctions market holds up well. In fact, it offers certainty to buyers and sellers, and particularly certainty in pricing. Auction returns over the last few months have tended to prove that, and likely that will be the case as we move through 2025.