The UK property auction market saw a notable increase in activity during May, with a significant rise in the number of properties brought to market. A total of 3,988 lots were offered across the country last month, representing a 6.1% increase when compared to the same period in the previous year. This surge in available properties indicates a continued appetite from sellers to utilise the auction route.
However, while the supply of homes entering auctions grew, the rate of sales did not keep pace. The number of properties successfully sold rose by 3.4% year-on-year. This disparity meant that the national success rate for auctions, which measures the proportion of properties sold out of those offered, slightly decreased to 67%. Despite this marginal dip in success rates, the overall value of funds raised from these sales remained broadly consistent, totalling an estimated £526.9 million.
The residential sector continued to be the primary driver of the auction market's performance, contributing significantly to both the volume of sales and the total value generated. The value of completed residential sales saw a 2.1% increase over the year. Commercial property auctions also observed a rise in the quantity of lots sold, although the total value raised within this segment experienced a slight decline.
Regionally, several areas demonstrated robust activity. Yorkshire and The Humber, alongside the South West, were highlighted as strong performers over the three months leading up to May, recording increases in properties offered, sold, and the total funds raised. London also experienced growth in both its sales activity and the value of properties sold, while the West Midlands maintained its positive trajectory. Scotland saw the sharpest rise in auction activity levels, although its success rates currently sit below the national average.
David Sandeman, managing director of EIG, the organisation that compiled the data, noted that the auction market continues to outstrip last year's levels, with both supply and sales volumes generally increasing across the UK. He acknowledged that the growing inventory of properties coming to market is creating some pressure on success rates but suggested that activity levels remain healthy as the market enters the summer period, supported by a consistent flow of stock and ongoing buyer demand.