Auction listings rise but sales revenue declines in ‘challenging market’

The number of properties going under the hammer has increased but there has been a dip in the percentage of lots selling.

Figures from auction data company Essential Information Group (EIG) for July suggests the auction sector is facing similar challengers to the traditional sales market.

Its analysis shows a 6.8% monthly rise in auction listings during July 2023, up 16.2% on a quarterly basis and a 19.9% annual increase.

However, while offerings have grown, the percentage of lots sold has decreased across the board, with a 26.8% decline in revenue raised during July 2023 compared to the previous year. 

The residential sector has seen a robust increase in lots offered, marking a 24.1% year-on-year growth, with a relatively moderate decline in the percentage of lots sold, EIG said.

In contrast, the commercial sector has faced more significant challenges, experiencing a 38.9% year-on-year decline in funds raised in July.

EIG suggested this points to a more challenging environment for sellers.

David Leary, director of EIG, said: "This decline in total revenue signals an evolving landscape that requires a deeper understanding of market dynamics and strategic adaptation.”

He said it is important to focus on regional differences.

"Areas like East Anglia and the North East have shown notable growth in lots offered and sold, suggesting thriving markets and encouraging investment opportunities. 

“However, even amid these positive developments, London has seen a dip in both these metrics, indicating a more complex scenario in the capital's property auction sector.

"As we shift our gaze across the regions, it's evident that local factors continue to play a pivotal role in shaping auction outcomes. For example, the North-West has seen a surge in residential offerings, while London experienced a considerable decrease in total amounts raised. 

“These data points emphasise the importance of understanding regional nuances, even as we monitor broader national trends."