Desperate sellers flock to “the landlord’s favour...

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30 June 2023

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By Graham Norwood

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Desperate sellers flock to “the landlord’s favourite” - auctions

Auctions have long been a favourite way for buy to let and other investors to bag a property bargain.

And now it seems that sellers who are becoming increasingly desperate to find a buyer are using auctions.

Data from digital services firm Moverly shows that auction sales have risen by 11.3 per cent recently.

Moverly analysed historic data on the property auction market, looking at the number of homes sold at auction, the average price of an auction property and the total value of property sold, to see whether a cooling housing market has further increased people’s interest in the auction room.

The research shows that the number of properties coming to auction in the UK has increased by 11.3 per cent in the past year, rising from 13,854 lots in 2021/22 to 15,424 in 2022/23.

While the average price of an auction property has declined by 1.8 per cent year on year to £190,871, there was still a staggering £2.9 billion worth of residential property sold at auction in 2022/23.

According to 2022/23 figures, the region in which the most properties are going under the hammer is the North West (2,839) followed by Yorkshire & Humber (2,107).

But the biggest annual increase in the number of auction properties has been recorded in Scotland (53.8 per cent) followed by the South West (26.4 per cent).

While auction prices have cooled across the majority of regions in the last year, some parts of the UK have still seen prices rise, including Scotland, Yorkshire & Humber, the West Midlands and North East.

When it comes to the total value of auction sales in the past year, London homes top the table with a total value of £794.5 million.

South East sales have totalled £554.6 million while homes under the hammer in the North West have a combined value of £308.9 million.

Moverly co-founder Ed Molyneux says: “In cooling market conditions, many sellers are struggling to find and secure good buyers. Rather than playing the waiting game while property values continue to stutter, an increasing number are heading to the auction room, accepting the marginal hit on the sale price in return for a quick and certain transaction.

“At the same time, while UK house prices are indeed cooling, they’re still relatively high after the past few years of incredible market boom.

“And so we’re also seeing a good number of everyday buyers heading to auction, too, aware that they might be able to scoop up an affordable bargain at an expensive time.”

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- Andrew townshend
- 30 June 2023 07:36 AM
A common mistake here seems to be over inflated guide prices that decreases interest in the property
Ellie Edwards

30 June 2023 07:56 AM
And the reserve price may be 10% more than the guide price. Guide prices are usually set at a low value to attract interest, so your observations, Andrew, are quite surprising.
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- Worried Landlord
- 03 July 2023 08:48 AM
I've never bought anything at auction but on occasions I have noted the guide price of a local property and then seen it sell for a lot more. In my view a lot more than I would have paid. Perhaps those days are gone.