More than 22,000 bids were placed between January and the end of May – up by 205% on the same period last year and 146% up on the same period in 2019.
The auction house says the upward shift in competitive bidding is also driving up sale prices, with over 48% of properties selling above their reserve price in May.
Online auction sales are also on the up, with 2,159 properties already sold so far this year raising £345 million in capital value for sellers.
iamsold is attributing the rise in demand to increasing consumer confidence and demand for alternative buying solutions that deliver speed, security and results.
Along with rising buyer confidence, the firm says more estate agents are offering auctions as an alternative method of sale, with over 3,000 branches currently using iamsold’s services.
Jamie Cooke, managing director at iamsold, comments: “We’re extremely encouraged by buyer interest in properties, and it indicates that there’s a voracity in the auction market that hasn’t yet been seen.”
“The buoyancy of the housing market, and consumers generally being more au fait with digital-first solutions in their everyday lives, is likely to have had an influence on the upward trajectory we’re experiencing.”
According to Cooke, iamsold is in the middle of a ‘perfect storm’, boasting a greater range and number of properties now available for auction, allowing them to meet the demand that is not being met by the wider housing market.
“The expectations of consumers align perfectly with the benefits that the Modern Method of Auction is able to offer – speed, security, transparency, and an accessible bidding process that drives results,” he adds.
“It’s a great time for estate agents to consider adding auction to their portfolio of services as a way to win new instructions and provide their clients with much needed choice.”
Soaring demand drives Clive Emson auction to success
A range of properties across southern England went under the hammer in Clive Emson’s latest auction.
James Emson, Clive Emson’s managing director, comments: “Once again bidders drove demand, with various lots going for well in excess of guide prices. The appetite for property, sold transparently and quickly, remains strong.”
The firm raised more than £20 million in sales in the fourth of eight auctions this year, with a 75% success rate.
With planning permission for 16 residential units, a plot of semi-rural land between Faversham and Canterbury, Kent, fetched £1,146,000 with 15 bids.
Totalling £1,057,000, a house on Hayling Island near Portsmouth in Hampshire, standing on nearly six acres, went for £850,000, along with 10.5 acres of related woodland for £207,000.
Currently let at £61,980 per annum, six flats in Grade II-listed College House in Faversham, Kent, sold for £955,000, with 91 bids made.
Staying in the county, a block of 33 lock-up garages near Deal, currently generating £13,860 per annum, went for £397,000, which was £147,000 above estimate, following 45 bids.
There was also a rare opportunity to purchase a “beautiful” woodland setting overlooking the River Dart and Dartmouth Naval College in south Devon. The 0.71-acre site by Jawbones Hill went for £105,000 against the guide price of £50,000-plus following 26 bids.
In the Norfolk Broads village of Potter Heigham, Great Yarmouth, a licensed house in multiple occupation (HMO) with seven bedrooms fetched £400,000.
Meanwhile, a semi-detached cottage at Walton-on-Thames, Surrey, sold for £587,000, with 42 bids against the £500,000 guide price.
Clive Emson’s next auction takes place on Wednesday July 28, with the catalogue available from Friday July 9. Lot entries close on Monday July 5.
Name your price! SDL offers homes from £1,000-plus to £1 million-plus
SDL Property Auctions has launched its latest interactive digital catalogue, offering buyers a hassle-free way to secure their next property.
With around 200 lots, the auctioneer says this month’s National Property Auction will be a smooth experience with a fixed completion date and no gazumping.
Featuring homes with guide prices ranging from £1,000-plus to £1 million-plus, the catalogue offers properties for all budgets in all parts of the country, from a plot of land on Orkney down to a flat in Teignmouth on the Devon coast.
At the lower end of the budget spectrum is a ground-floor flat in Cumbria. Previously let at £300 per calendar month and sold with vacant possession, 5B Egerton Court in Barrow-In-Furness has two bedrooms, a kitchen, lounge and bathroom. Its guide price of £1,000-plus is sure to make it appeal to first-time buyers or investors.
In Wales rests an attractively-priced bungalow going under the hammer with a guide price of £35,000-plus. Requiring refurbishment, 11 Hill Street in Rhosllanerchrugog near Wrexham is located in a quiet village on a large plot with space to extend, subject to planning permission, and features a lounge, kitchen, bedroom and bathroom.
Character properties include 35 Underbank Old Road, a three-storey mid-terraced cottage in the West Yorkshire town of Holmfirth. The property features a dining kitchen on the ground floor, sitting room on the first floor and two bedrooms, a bathroom and a study on the second floor. The guide price is £115,000-plus.
At the top end of the budget is an “exciting” development opportunity in Warwickshire. Site 106A014, King Street in Bedworth extends to around 2,000 square metres and has full planning permission for 30 flats, with work having already begun on six units. The plans allow for a mix of new units and conversions of existing buildings and there is potential for a further two-four flats or a hostel block, subject to planning consent. The guide price is £1 million-plus.
Managing director and auctioneer Andrew Parker comments: “We are delighted to offer another packed and varied catalogue of properties to suit all budgets and tastes. Once again, we have lots in England, Scotland and Wales, underlining our position as a national auctioneer.”
“We know that buying a property is currently a challenge for some people due to the high demand versus supply but rest assured, when you buy a property by auction, both parties enter into a legally binding agreement to complete the purchase.”
“There’s no room for negotiation on the price; you know exactly what you’ll have to pay and it’s completely transparent and secure.”
The auction will be live-streamed from SDL’s head office auction studio on Thursday June 24, with bidding available online, on the phone and by proxy.
Auction House sees ‘phenomenal’ success with highest monthly sales total ever
Auction House has announced its highest-ever monthly sales total, with its sales in May alone exceeding £70 million (£70,309,251).
The group sold 397 properties from 466 properties offered under the hammer last month, at an impressive success rate of 85.2%.
So far this year, the group has sold 1,395 lots from 1,709 offered, at a success rate of 81.6%, and has raised a total of over £220 million.
Commenting on the figures, Auction House managing director Jeremy Prior says: “This is an incredible achievement – especially when you take into account the fact that this figure has been achieved almost exclusively for our private sellers.”
“The closure of courts during the Covid 19 crisis means that we have been without our usual selection of repossessions – often seen as the lifeblood of auction stock – from corporate clients.”
Prior says there is no doubt that the end of the stamp duty holiday has been the driving factor pushing sales forward.
“We have seen enthusiastic bidding and an appetite for purchasing property that has continued undiminished, even while the pandemic and restrictions have continued,” he adds.
According to Prior, property prices are going to continue to hold their own for some time to come, despite rumours that a house price crash is on the horizon.
He explains: “For a house price crash to happen, a mix of certain ingredients has to be in place. For example, during difficult times like these, there would have to be a lack of government intervention and support.”
“But, as we’ve seen from measures like quantitative easing, extensive furlough, and the stamp duty holiday, the government has already done a considerable amount to prop up the market.”
“There also seems to be no appetite on the part of the government to pay back the massive debt that has been accrued over the pandemic – which would certainly act as a huge deflationary pressure. So, with all of that taken into account, whilst we may see a cooling off in the market, I honestly think it’s difficult to envisage a house price crash in the near term.”
Prior’s analysis was echoed by industry analysts and forecasters who took part in Auction House’s recent annual conference, which was held virtually for the first time via live video stream on Friday June 4.
He concludes: “Most importantly, the phenomenal success of Auction House means that there is a plethora of happy vendors out there, successfully selling to lots of interested buyers, with bidding staying keen and prices remaining buoyant. And that’s a situation we expect to continue for some time to come.”
This post has originally been featured in Property Investor Today.