The UK property auction market has been swept up in a surge of activity, with a staggering 35.3% increase in properties offered in June compared to the same period last year. The resulting influx of listings saw a total of £519.7 million raised through auctions nationwide, representing a significant 33.5% hike on previous figures, according to data from the Essential Information Group (EIG). However, buyer demand failed to keep pace with this increased supply, leading to a national success rate decline to 65.3%, EIG reports.
The growth in auction activity is evident across both residential and commercial sectors, which recorded year-on-year increases in lots offered, sales completed, and funds raised. The South West and Yorkshire and the Humber regions saw particular strength during the April to June quarter, while London posted a robust performance with a 20%+ increase in the volume of lots sold and total value raised. Scotland also experienced a sharp rise in activity, albeit with success rates lagging behind the national average.
Industry experts point to recent legislative changes as the primary driver behind this heightened auction activity. The introduction of the Renters’ Rights Act in May, which abolished assured shorthold tenancies, has prompted many landlords to reassess and adjust their property portfolios in response to shifting regulatory landscapes. This shift is said to be influencing investors' decisions, with some opting to offload properties that no longer align with their investment strategies under the new framework.
Stuart Collar-Brown, president of NAVA Propertymark, commented on the market's resilience: “The UK’s auction market continues to deliver positive results, with lots increasing by 35% year on year and sales increasing by 31%. This shows that both buyers and sellers continue to see the value of auctioning their property as they seek certainty in a turbulent economic climate.” He also noted that the legislative changes are impacting commercial sales, as investors increasingly favour longer-term leases over the now-defunct assured shorthold tenancy model.
The implications of the Renters’ Rights Act extend beyond direct sales, raising questions about the enforceability of rent guarantor contracts under the new legal framework. As the market heads into the summer, EIG reports that activity remains steady, supported by a continuous flow of new stock and sustained buyer demand. Realistic pricing is highlighted as crucial for maintaining a competitive bidding environment and ensuring continued growth within the auction sector.