According to recently published statistics released by Auction Finance, the number of properties sold at auction is increasing at the fastest rate for years, showing a 78% year-on-year increase in sales it financially supported in 2014.
The total amount it advanced throughout 2014 leapt by 133% compared to the previous year.
Regions with the biggest increases in lots sold were East Anglia - 400% and the West Midlands - 200%. The South West and South East also reported a health increase in sales of 171%.
The average bridging loan taken out to buy property at auction now stands at in excess of £98,000, up from £75,000 in 2013.
Terraced houses were the most popular investment property type according to Auction Finance’s figures, with 41 per cent of properties funded falling into this category. Semi-detached properties and flats also proved popular.
Scott Hendry, director at Auction Finance said: “The days of buying or selling a house through an auction being seen as last resort, are fast becoming a thing of the past. And with most properties sold at all UK auctions being completed and exchanged within four weeks - about ten weeks quicker than properties sold through an estate agent - the popularity of property auctions is only set to increase.
We’re seeing a significant increase in the appetite for property purchases at auction; auction rooms are better attended and we saw a number at capacity throughout last year”, continues Hendry.
As a principal lender solely dedicated to the auction market, we have seen a shift in the geographical requirements of professional property investors at auction over the past year; this is particularly reflected in the regional increases in Auction Finance supported property sales at auctions.”
