Property auction market positive at end of 2011

Monday, February 20, 2012

Latest figures show there was some good news at the end of last year, as the property auctions market finished the year on a three-month high, according to the National Association of Valuers and Auctioneers (NAVA).

Figures published by the Essential Information Group show that the number of lots sold at auction increased during December, to 2,448 - a figure higher than in either October or November.

There was a slight difference between residential and commercial property sales. Residential property performed well during December, with an 11.7% increase in the number of properties sold compared with December 2010 (1,996 lots compared with 1,787 lots). In contrast, there was a 7.1% year-on-year drop in the number of commercial property lots sold (444 in December 2011; 478 in December 2010).

Over the whole year, a total of 32,646 lots were offered for auction, of which 24,125 were sold (74% per cent). That compares with figures from 2010 where 31,457 were offered and 22,015 sold (70 per cent).

And it wasn't simply a question of keen buyers snapping up bargains; the amount raised in 2011 was 2.2% higher than in 2010 (£3,425,149,984 and £3,350,664,429 respectively).

Guy Charrison, NAVA Chairman, said: "There was definite fluctuation in the property auction market throughout 2011, but it is very good news that the residential sector closed the year on a positive note, not least as the stories coming out of other parts of the housing market are less optimistic.

"That said, there is evidence that the commercial sector is facing a challenge. A mixed picture is developing as some lenders reduce lending for commercial property, while others ramp up their offering. At the same time, the retail industry is experiencing difficulties and this will no doubt impact on property levels. We therefore await the first figures for 2012 with interest."

David Sandeman, Managing Director of EIG Group added: "December's auction results are largely positive, epitomising the trends witnessed throughout 2011 - This against a backdrop of continuing economic turmoil in Europe and a seemingly stagnant open market in the UK (Land Registry shows a 3.4% drop in property transactions during the first three quarters of the year). It is encouraging to see, and shows that property auctions remain a viable and attractive means of buying and selling property."