A normally-ebullient auction company has admitted to a big slump in the number of bidders at its latest sale.
Auction House’s May event saw the most lots offered and sold at any time in its 16 year history but managing director Jeremy Prior cautions: “We have also seen a marked reduction in numbers of registered bidders – dropping by at least 30 per cent and in some parts of the country by even more.
“However, this means that those bidders still buying are serious and motivated (each of them hoping that there is now less competition) and have confidence in the future of the housing market.
“As in previous difficult times there appears to be a ‘ripple effect’ taking place, with the South of England initially experiencing more challenging market conditions, which we suspect may spread northwards over the coming months.”
He says that in May Auction House offered 707 lots and sold 537 of them, a 76 per cent success rate; this raised £72,650,604 – the highest-ever total for the month.
Prior insists that in a tricky market, the advantages of auction over private treaty really make themselves evident.
He claims: “The competitive atmosphere in the sales room (both in-room and livestream) means that once a property has reached its reserve, a leading bidder is often reluctant to relinquish their position simply for the sake of one more bid. The psychology of auction means that for the few seconds that they’re ahead, the property feels like it’s theirs.
“Meanwhile, the under-bidder feels the pressure to move into the lead, which often may only be one more bid away. With the help of a good auctioneer, this can set up an ever-changing and dynamic process, all of which drives up the price for the seller.”
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Ready for the big boys to hoover it all up on the cheap
Almost like the climate thing is a big con…
Maybe the unsold properties were over priced? Cash buyers are in a good position now and can just as easily pick up a bargain through estate agent without the time pressure of an auction.
I've found more and more properties on the market are using sealed bids, like a blind auction. I hate it.
As predicted the market will be dominated by the large portfolio landlords, with prices too match 💰💰🎉🎉 the smaller ‘mom&pop’ landlords will just sell up and fade away….. and of course rents will go up…. Again 😂👍🏻
I've noticed lots being withdrawn pre auction and think this is likley due to poor interest in the run up to the auction in these lots, in order to reduce the number of unsold lots
Forcing a demand issue again, free movement of property being stopped means landlords will not bring any to the market and in turn rent increases.
Vicious circle and unless Gove, Gen Rent, Shelter, NRLA, Banks get a grip they will all suffer from this.
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