Editor's note: This brief was summarised by The Property AI Team from a report by PropertyWire. Read the original article for full details.
UK Auction Volumes Surge as Landlords Sell Off Stock
UK property auction volumes increased by 35.3% in June 2024 compared to the same month last year, according to data from the Essential Information Group (EIG). A total of 4,008 lots were offered, with sales up 31.3% and total funds raised rising 33.5% to £519.7 million.
The increase in properties coming to auction outpaced buyer demand, resulting in the national success rate declining to 65.3%. Both residential and commercial sectors recorded year-on-year growth in lots offered, sales completed, and funds raised.
Regional Performance
The South West and Yorkshire and the Humber were among the strongest performing regions between April and June, showing substantial growth in activity and sales. London also posted a strong quarter, with both the number of lots sold and total value raised increasing by more than 20% year on year. Scotland experienced a sharp increase in auction activity, though success rates there remained below the national average.
Regional variations in auction activity come as local authorities introduce new licensing schemes affecting rental properties in various parts of the UK.
Legislative Impact
EIG suggested that the rise in auction stock may partly reflect landlords reviewing their portfolios following the introduction of the Renters’ Rights Act in May, which abolished assured shorthold tenancies. This legislative change has prompted some investors to reassess their holdings. The changes have also raised questions about rent guarantor contracts and their enforceability under the new framework.
Market Outlook
EIG reported that auction activity remained steady heading into the summer, supported by a continued flow of stock and sustained buyer demand. Realistic pricing was highlighted as essential for maintaining a competitive bidding environment and supporting growth in the auction sector.
Source: PropertyWire