Buyers and sellers rush to auctions to beat market slowdown - claim

Auctioneers claim they are benefiting from a sales market slowdown as buyers rush to make use of mortgage offers and sellers and agents aim to avoid fall-throughs.

It comes amid fears that rising mortgage rates and the cost of living crisis could make it harder for buyers to access finance and dampen demand.

Pugh Auctions said it has seen a 32% increase in first-time auction buyers visiting its website this month compared with July 2022 – when Boris Johnson resigned. 

Plus, it has had more than 30,000 people browse its October auction alone. 

A spokesperson said: “Nobody can deny that people looking to buy homes right now have been dealt a tough hand.

“Both buyers and estate agents are struggling under the pressure of the UK’s rollercoaster economy as they try to keep afloat amongst the panic. 

“But the unprecedented climate has forced buyers to pursue alternative routes to beat the clock against their mortgage offer running out. 

“Which means we’re seeing buyers rush to auction for a stress-free, quick, guaranteed sale. 

“Whilst of late the property market has been unpredictable. Using Boris’s resignation date specifically as the data point of comparison seemed appropriate given the turbulence in politics and the economy since then.

Meanwhile auction service iamsold, which also works with agents to put their listings under the hammer, said its own data suggests the Modern Method of Auction currently offers a completion rate of 95% compared with the 70% rate of private treaty.

With changing circumstances pushing up fall-through rates, the iamproperty said auctions are supporting estate agents to help vendors complete, while securing their own sales pipeline.

Jamie Cooke, managing director for iamsold, said: “As the cost of living crisis continues to impact the market, mortgage products fluctuate and buyers challenge sale-agreed prices more than ever before, we are here to help estate agents.

“We are working with our partner agents to help them to revaluate transaction strategies to push sales through even as the market cools. 

“Vendors and agents have the same goal. Vendors want agents to get them moving with a secure sale, while top priority for agents is locking in sales for their branch and winning more instructions.

It comes as iamsold reported that September was a record month for the auction market, with a record monthly volume of property sales. It was also a record month for fees paid out to agents, topping £2.3m.