Auction House UK– operating as Auction House Coventry and
Warwickshire - has sold a total of 3,369 lots so far this year – a full 10%
above the figure achieved for the same period in 2021.
Sally
Smith, Director and Auctioneer said: “Despite uncertain market conditions, Auction
House has continued to buck the trend, still successfully selling four out of
every five properties in its auctions - which is a testament to the expertise and reputation of our
teams. By contrast, several other auctioneers are struggling to sell around
half of the lots they list, and some companies are hovering nearer to just 30%.
“This is
unquestionably because of a general sense of nervousness in the market – caused primarily by a fear of
ever-increasing mortgage rates and subsequently a more cautious approach to
buying. The number of private treaty sales are dropping due to reduced stock,
and deals are falling through because of mortgage offers being amended.
“Meanwhile,
the Office for Budget Responsibility (OBR) has said it expects housing activity
to slow over the next two years, and the Chancellor announced in his Autumn
Statement last week that the stamp duty cuts introduced by his predecessor are
going to be abolished by the end of March 2025. Crucially, this does mean that
this support for the housing market will continue for another 28 months – at
precisely the time when it needs it most.”
The total
money raised for clients by the group currently stands at over £534m (£534,017,610) – up on the £520m
(£520,167,529) raised at this stage last year.
Sally Smith
says that the trajectory of the market will in part be down to managing the
expectations of sellers. She added: “Vendor expectations on the value of their properties need to
be realistic. They should be guided by the prices suggested by our team of
knowledgeable experts based in over 40 regional offices around the UK, all of
whom have their finger on the current pulse of local market conditions.
“However, the beauty of auctions is that
the market will find its own level. Sellers can always set a reserve price - a
safety threshold below which they are not prepared to drop. Then they can sit
back and let the competitive environment of the auction room, driven by our
talented and experienced auctioneers, work its magic.
“What’s more, high interest rates can
be something of a double-edged sword. At times like this,
buy-to-let investors may be reassured by the fact that some of the increased
fees can often be partly offset by higher rents, rising because demand is
outstripping supply.
“Whatever
the circumstances, the key thing to understand is that we are a solutions-based
business. If current market conditions mean that you need to sell quickly, whether that’s tenanted stock, a
commercial or residential property, auctions can often provide what
the rest of the property sector can’t – namely speed and security.”