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Category: property market
The UK property auction sector has kicked off 2024 with unprecedented vigour, marking January 2024 as its busiest January ever.
According to Essential Information Group (EIG), a leading provider of data and insights in the UK property auction market, there has been a remarkable surge in activity, setting the stage for a promising year ahead.
What does the data tell us for property overall?
Key figures from January 2024 reveal a staggering 45.1 per cent increase in the number of properties offered at auction, when compared to the same period last year.
What's more, there has been a substantial 49.8 per cent growth in properties sold under the hammer, indicating a robust demand for auctioned properties across the country.
Total revenue generated in January 2024 rose by a whopping 98.3 per cent, when compared to the same month one year prior – standing at £147.3 million.
Residential property auction data for January 2024
In January 2024, there were 1,340 lots offered (seeing a 45.8 per cent increase against January 2023). This translated to 904 residential lots sold in the same period (a 52.2 per cent increase against January 2023).
This meant that if you put your residential property up for auction in January 2024, you would have a 67.5 per cent chance of a sale (up from a 64.6 per cent chance of sale last year, a 4.5 per cent increase against January 2023).
Revenue generated from residential properties in January 2024 totalled £135.5 million, up from £66.6 million last year (a 103.4 per cent increase against January 2023).
Commercial property auction data for January 2024
January 2024 saw 124 commercial properties offered at auction, a 37.8 per cent increase from 90 commercial properties offered in January 2023. This translated to 62 properties sold, a 21.6 per cent increase from the 51 commercial properties sold at auction in January 2023.
This means that if you put a commercial property up for auction in January 2024, you would have had a 50 per cent chance of success – down from a 56.7 per cent chance of success in January 2023.
Revenue generated from commercial properties in January 2024 totalled £11.9 million, up from £7.7 million (a 54 per cent increase from January 2023).
Why such an increase in demand?
David Sandeman, Director of Essential Information Group, attributes this surge to the escalating appetite for property auctions.
January has traditionally been one of the quieter months for auctions, but there has been a significant uplift in New Year sales over the past few years.
[…] The primary reason for this shift this year is two of the major London auctioneers choosing to put on additional sales to kick off the year, in advance of their standard February dates.
This indicates the increased appetite and demand for auctions, as we started to see grow at the end of last year and we have seen auctioneers choosing to add more dates into their calendars to cope with this influx.
Commercial Trust specialises in auction finance
Auctions can be a way that property investors secure assets below market value.
If you are looking to purchase a property at auction, and you do not have enough cash to buy outright, a bridging loan is the ideal way to finance buying property at auction.
Commercial Trust is a property finance broker that has access to a wide range of auction finance lenders from across the United Kingdom. We will can help you arrange finance in a matter of days.
As the sector braces for a busy year ahead, industry experts remain optimistic about the outlook, fuelled by growing demand in a buoyant market environment.
With the momentum gained in January, 2024 appears to be a dynamic and promising year for the UK property auction sector, paving the way for opportunities for investors to expand in the months to come.
