Challenges remain despite increased auction activity

Gaps between buyer and seller expectations have spread into the auction sector.

The issue has become common among estate agents dealing with traditional residential sales but new figures from Propertymark suggest its members are facing similar issues on auction lots.

One member reported that sellers and buyers’ expectations on price are 10% to 15% away, while another blamed overvaluing by estate agents.

The findings were part of Propertymark’s first quarter 2024 Auctions Barometer. 

It found the biggest issue that auctioneers and valuers are experiencing is securing ‘good stock’ for sale.  

Other challenges included ‘a shortage of staff’, problems ‘recruiting experienced, and qualified staff’. 

The report found that 58% of members saw the number of lots available for all auction types surged in the first quarter compared with the end of 2023.

Meanwhile, 94% of members said the number of lots achieving their reserve price stayed the same or increased on a quarterly basis and 39% said the number of lots exceeding their reserve price increased.  

Richard Worrall, NAVA Propertymark president, said: “2024 has started well. In the residential and commercial property sectors, there seems to be a return of confidence, probably helped by the hold in interest rates. 

“Catalogue numbers remain strong and registered bidder levels are also high. Results from early sales this year show a strong appetite for well-priced properties of all types with buyers out in force for good quality properties.” 

Nathan Emerson, chief executive at Propertymark, added: “It is encouraging to see our members’ performance improve in tandem with the overall economy.

“Despite this, challenges remain, including increasing costs. Our members are also working hard to manage the expectations of buyers and sellers to secure new lots. Overall, our members are cautiously optimistic about the remaining 2024 outlook.”