Property auctioneer, Auction House, has revealed that it has successfully sold 1,409 lots in the months between January and May this year - a month before that figure was achieved in 2018.
According to the firm, this represents a 76% success rate and puts the group 3.8% ahead of last year (1,358 lots sold) at a time when it is already showing record entries of nearly 550 lots for the month of June.
Roger Lake, Founding Director, said: “Once again, these are very healthy statistics for Auction House – especially at a time when the slowdown in London appears to be spreading outwards. Nevertheless, the supply of properties from sellers is strong, and our entries for the first half of 2019 are likely to be up almost 10% on last year.
We put this down in part to sellers preferring to sell in-region through a local auctioneer, plus the growing number of landlords exiting the rental market. The Private Rented Sector has been increasingly targeted by government, with the result that many landlords are now voting with their feet.
Auction is the regularly chosen route to sell rental stock, especially when mortgaged. The great advantage is that the tenants stay in-situ, so rent continues to be received by the seller up until completion, and by the buyer from their date of purchase.”
May was a quieter month for Auction House. Despite this, and the political turmoil that has further upset buyer sentiment, the group sold 266 lots from the 381 offered at a success rate of 70%, with £36 million raised.
Roger added: “I expect that the climate over the coming months will remain challenging for all involved in the sector, but sellers will always have auction available as a speedy exit solution for surplus properties, whether they are vacant or tenanted.
The picture for auction buyers is especially attractive: more choice, an increased number of bargain-priced lots, and affordable lending. The market is balancing out, which means that both sellers and buyers should benefit.
The impact from the introduction of the tenant fees ban this month has yet to be fully felt, but it looks likely that rents are going to rise. With prices staying static, this means that yields should improve - which will further boost property as a long-term investment.”