Auction Market benefits from property bargains

Wednesday, May 04, 2011

The latest statistics from property auctions held across the UK show that buyers took advantage of residential property bargains during February, according to the National Association of Valuers and Auctioneers (NAVA).

Figures published by the Essential Information Group show that February was a busy month, with a 6.5% increase in the number of residential property lots offered at auction compared to a year earlier, and also a 2.3% increase in lots sold.  The total amount raised from auctioned residential properties was only 1.4% higher than February 2010, suggesting that many buyers secured a good deal during the month.

There was greater positivity in the commercial auction market, which saw a 10.2% increase in lots offered from February 2010, and a substantial increase in the amount raised from auctioned commercial properties; a 36.4% increase compared to February last year.

In March however, there was a drop in the number of both residential and commercial properties put forward for auction, although only a slight decrease of 1.7% in Properties the number of residential lots sold, compared to March 2010.

The health of the auction market has improved, continuing the sustained recovery which began in the second quarter of last year, with buyers benefitting from the choice on offer and sellers recognising the exposure achieved through marketing a residential property through an auction house.

Melfyn Williams, Chairman of NAVA, commented: "After a predictably slow New Year period, with few auctions held, the market picked up considerably during February, with lots offered and sold markedly up.

"March's statistics reflect positivity in the wider market place, with fewer properties coming to auction as the sales market improves and with many bargains snapped up during February.  We expect a robust showing from the auction market during the second quarter of the year.

"The auction market remains an attractive vehicle for those looking to invest or expand their property portfolios due to the current, favourable market conditions, and with property continuing to prove a solid, long-term investment."

The key statistics from the latest quarterly release show that:

• There were 2,245 residential lots offered in March; a decline of 4.7% from March 2010, with the number of lots sold down by 1.7%
• Commercial property lots saw a sharp decline of 25.9% from March 2010, from 687 lots to 509
• 2,823 residential lots were offered in February 2011; a rise of 6.5% from February 2010, and there was also a 2.3% increase in the number of lots sold
• Commercial property lots offered at auction increased by 10.2% during the same period, from 628 to 692
• January, traditionally a quiet month for auctions, saw 490 residential and 25 commercial lots offered at auction compared to 303 and 21 offered respectively in January 2010

As is usual in the auction market, January saw only a handful of auctions held across the country, although with a considerable increase in the number of residential lots put up for auction.