Auction roundup – The ‘tremendous success’ of online and MMoA

11 December 2020 | Investment

This week’s results have proven, once again, that auctions – particularly, online auctions – continue to thrive in the face of the Covid-19 pandemic. Here at Property Investor Today, we take a closer look…

Zoopla agents ‘sold’ on MMoA partnership with iamsold

Property portal Zoopla has seen over 100 of its member agent branches sell properties via the Modern Method of Auction (MMoA) through its partnership with iamsold.

Since the tie-up launched to estate agents in the summer, these agents’ early MMoA sales have raised over £800,000 in capital value for sellers and earned £31,000 in agent fees. A further 200 branches are in the later stages of signing up to be onboarded to iamsold in the coming weeks.

With sellers relying on speed, security and transparency in a sale more than ever, the MMoA presents a major growth opportunity for estate agents. Although the MMoA is a lesser-known method amongst UK homeowners, 46% said they would be likely to consider it if they had all of the details about how it worked.

So far this year, iamsold’s online auction sales are up by almost 12% compared to the same period in 2019.

Jamie Cooke, managing director at iamsold, comments: “We’ve pioneered the MMoA and it’s our goal for it to become a mainstream way of buying and selling property in the UK. There are clear benefits for estate agents, and it can be a lifeline for vendors relying on a quick and secure transaction, which private treaty can’t always promise.”

“Zoopla’s backing to join us in driving forward this positive change is invaluable. Not only is it expanding our network of partner agents and auction champions, it’s hugely contributing to the work we’re doing to change the perceptions of auction to grow its market share even more. It’s an exciting time for auction.”

Andy Marshall, commercial director at Zoopla, adds: “We’re delighted with the positive results our agent partners have already enjoyed working with iamsold. The feedback we’ve received from agents suggest for many the MMoA represents a real opportunity to grow and diversify their revenue beyond traditional sales.”

“We are committed to being the agents’ champion and the MMoA, with its faster sales, higher completion rates and increased rate of return, is the perfect way for agents to capitalise on the busy market. An increasing number of agents are realising these benefits and we’ve no doubt this will continue to grow as we head into what promises to be an exciting end to the year.”

Online auctions hailed ‘tremendous success’ after final sale of 2020

Mark Jenkinson and Son has called the switch to online auctions a ‘tremendous success’ after its last sale of the year topped £5 million sales and attracted a record number of registered bidders.

The Sheffield auctioneer’s eighth and final sale of 2020 saw 36 of the 41 lots offered sell for a total of £5.7 million – the third sale in a row to achieve a total in excess of £5 million.

Adrian Little, head of the auction department at Mark Jenkinson and Son, comments: “There is no doubt the online auction approach has been a tremendous success and enabled our clients, large and small, to continue selling and buying during the two lockdown periods this year.”

“There are distinct advantages for busy buyers who can register and bid from wherever they are, either by placing their best bid at the start of the day or tracking activity and bidding in the final closing minutes.

He adds: “In our final auction this year, intense competition was seen throughout following a record number of registered bidders taking part.”

Several properties sold well above their guide price, including a stone-built former vicarage on Walkley Lane, offered on behalf of The Diocese of Hallam, with a guide of £350,000 selling for £520,000.

A former primary school at Spinkhill with development opportunities sold on behalf of Mount St Marys College, with an estimate of £300,000 achieving £599,000 following intense bidding. Meanwhile, the former headmasters house next door went for £164,000.

Other highlights of the online auction included a freehold development site of just under an acre in Brampton Bierlow, Rotherham, which had a guide of £475,000 but sold for £540,000. A large end of terrace property in Nether Edge, Sheffield, requiring complete restoration and sold complete with contents went for £204,000 against a guide price of £150,000.

Little adds: “By the end of this year, I anticipate our total for 2020 will approach last year’s figure which was, in turn, the best since 2007.”

Mark Jenkinson and Son’s next two online sales will be held on January 26 and March 2 2021.

Auction House sale values skyrocket by over 60%

Auction House has witnessed a huge growth in recent months, with a marked increase in the value of sales made last month.

During its November sale, Auction House offered 229 lots and sold 161, raising £18.8 million. This compares with the sale value of £11.5 million in the same period last year – a 62% spike year-on-year.

Roger Lake, founding director of Auction House, says buoyancy has undoubtedly returned to the auction sector. “A new urgency is now evident, as more private buyers seek to purchase with the benefits of the current stamp duty holiday.”

“Bidding has been enthusiastic with strong prices being achieved on a wide variety of popular lots. The second lockdown certainly hasn’t held us back – in fact, we can safely say that it has been business as usual at Auction House. And we’re seeing that strong activity continuing into December.”

Lake says that both sellers and buyers appreciate the speed of the auction process, attracted by the certainty of the sale and the fixed timeline it promises.

He continues: “Our Covid-secure procedures are working well in Tier 2 and Tier 3 areas, and our remote bidding systems are proving very effective and increasingly popular. Right now, there’s a rush to get property sold before the Christmas/New Year holiday. We have over 600 lots entered into our December auctions, which is on a par with last year’s figures.”

Since the start of 2020, the group has sold a massive 2,877 lots from 3,656 offered, with a success rate of 78.7% and raising a total of nearly £386 million (£385,934,000).

Lake concludes: “In the final quarter of the year, some of our regions – for example Manchester, Leeds, Sheffield, Coventry, Norwich and Milton Keynes – have offered the highest number of lots in their history. That means some of our biggest ever auctions have taken place in the year of Covid – which is an astonishing achievement!”

Earlier this week, we heard from Kate Lay, director of Manchester-based Landwood Property Auctions, on the impact Covid has had on traditional auctions. You can view her verdict here.

This post has originally been featured in Property Investor Today.