Auctioneer, iamsold, is reporting record numbers of bids on auction properties ahead of the stamp duty holiday as house hunters rush to agree sales in time.
According to their most recent figures, 4,957 bids were placed last month alone and so far this year, 22,000 bids were placed between January and the end of May, which is up by 205% on the same period last year and 146% up on the same period in 2019.
Aside from an active market in the run-up to the deadline, the increases also indicate a growing appetite for auction properties and this method of sale.
The upward shift in competitive bidding is also driving up sale prices, with over 48% of properties selling above their Reserve Price in May. Mirroring the rise in buyer interest, online auction sales are also on the up, with 2,159 properties already sold so far this year raising £345m in capital value for sellers.
Jamie Cooke, Managing Director at iamsold, said: “We’re extremely encouraged by buyer interest in properties, and it indicates that there’s a voracity in the auction market that hasn’t yet been seen. The demand for homes isn’t slowing down, however, the number of properties available by Private Treaty is. Much like the rest of the market, our average sale price is increasing in line with this demand, however, we’re not expecting the slump that some are predicting once the Stamp Duty holiday comes to an end. Our data shows us that buyers are actively seeking alternatives that not only could offer them a good investment but a digital-buying process that is similar to those that they are familiar with in their everyday lives.”
“We’re in the middle of a perfect storm as we have a greater range and number of properties now available for auction, appealing to more buyers to meet the demand that is not being met by the wider housing market. The expectations of consumers align perfectly with the benefits that the Modern Method of Auction is able to offer – speed, security, transparency, and an accessible bidding process that drives results. It’s a great time for Estate Agents to consider adding auction to their portfolio of services as a way to win new instructions and provide their clients with much-needed choice.”