We’ve just finished compiling our annual lending figures and it came as no surprise to us that the number of cases we funded and amount we advanced last year was up significantly. Frankly, the hustle and bustle we’ve witnessed in hundreds of auction rooms up and down the country over the past 12 months meant it could only go one way. Comparative figures showed a 78 per cent increase in sales we financially supported last year, compared to 2013. The total amount we loaned throughout the year also leapt by 133 per cent.
Perhaps one of the most promising things is that a regional breakdown of our statistics show growth isn’t limited to London and the South. In fact, many UK regions showed significant uplift, with East Anglia (up 400 per cent) and the West Midlands (up 200 per cent) demonstrating the biggest increase in the number of lots we funded. We’ve seen a big shift in the geographical requirements of property investors over the past year as they realise the potential of investing in property outside of London and I’m pleased this is being reflected in these regional increases.
In terms of popular property types, terraced are still coming out on top, with 41 per cent of properties we funded last year falling into this category. Semi-detached properties and flats are also still popular. I wouldn’t be surprised if a large number of these properties were purchased as investments - either to be refurbished and sold on, or used as rental properties or HMOs.
Our contacts at Auction House also backed growth, after reporting a record year in 2014, with over 3000 lots sold, a 17 per cent increase on its previous best. Latest reports from Essential Information Group also portray a promising outlook for the industry following a record year for residential auction sales in 2014 which surpassed the previous high recorded in 2007. The total amount raised through residential property sales in 2014 broke through the £3bn mark for the first time in seven years – leaving an extremely positive outlook.
Evidently, the days of buying or selling a house through an auction being seen as last resort are fast becoming a thing of the past. I believe we can attribute growth to a number of factors, perhaps most notably an increased education amongst the wider public surrounding buying at auction, plus a better understanding of the benefits. And with about 75 per cent of properties sold at all UK auctions being completed and exchanged within four weeks - about ten weeks quicker than properties sold through an estate agent – it’s no surprise that we’re seeing more and more investors flocking to the auction room.
As the housing market continues on an upward trajectory, the number of private renters in the UK continues to grow, and knowledge around the benefits of buying at auction increases, it wouldn’t be ill-informed to say auctions will become an even more popular way of buying property throughout 2015 and beyond…
…watch this space!
