AUCTION House – operating as Auction House Scotland in Scotland – says that its latest record sales figures prove that buyers are still snapping up UK property, as long as it is correctly priced.
Between January and July, the group sold 2,644 properties – more than ever before at this stage in the year – a number which is up more than a fifth (21%) from 2022, with money raised so far up over £25m from last year’s £332,658,762 to £357,943,654.
Mandi Cooper, Managing Director of Auction House Scotland said: “These latest statistics prove what we have always said: that properly-priced property will always sell, even in the most challenging of markets. And let’s be honest: things are undeniably difficult out there, with a lack of buyer confidence and increased uncertainty.
“Nevertheless, the careful pricing strategy carried out by our network of regional auctioneers continues to reap dividends. That means while overpriced stock lingers in estate agent windows across the UK, our auction rooms are still seeing genuine interest from canny buyers who recognise the right prices when they see them.”
Mandi says that in contrast to estate agency, the nature of the auction process regularly drives prices upwards, assisted by talented auctioneers determined to squeeze the maximum value out of every lot they sell.
She explained: “The key difference is that estate agents will often initially list a property with a maximum price, in the expectation that they may have to discount it later. By contrast, auctioneers value each and every property realistically, knowing that the correct level will be found in the auction room. That’s why we’re bucking the trend and seeing sales figures rise rather than fall this summer.”
Mandi also points to a bigger-than-expected slowing in inflation recently, which has helped fuel expectations that the base rate might not climb as high as previously forecast.
She said: “There may be a glimmer of hope on the inflation front. According to the Office for National Statistics, UK Consumer Prices Index (CPI) inflation was 7.9% in June, slowing from 8.7% in May. So, we’re keeping a close eye on July’s inflation figures – out in a couple of weeks’ time – which may accelerate rate drops and bolster renewed market optimism.
“Also, last week’s Bank of England interest rate hike was widely anticipated. Therefore, it’s unlikely to have a significant impact on the mortgage market because it had been largely factored-in to rates already. What’s more, 87% of mortgages are on fixed rates anyway.
“But interestingly, it was only by one quarter of a per cent rather than the half a per cent that some pundits were predicting – which suggests that perhaps we’re nearing the end of these rate rises. “Our advice to motivated sellers – as ever – is to be realistic and take your auctioneer’s advice. Our network of regional auction rooms means that each team has an unrivalled knowledge and perspective on their local market. Remember – they want to sell your property too; so trust them. And despite all the commentary to the contrary, you too could still sell your property in these challenging conditions.”