The property auctions market grew 16.6% in 2023 with a 13% increase in properties successfully sold under the gavel, latest analysis from Essential Information Group reveals.

The residential sector saw a 14.7% surge in sales but more conservative growth in total with the average sale price dropping to £168,453—down 8.6% from 2022.

auctions LANDSCAPE

David Sandeman (main picture), Director of Essential Information Group, says: “The property auction market has navigated through a complex landscape marked by rising mortgage rates, the cost-of-living crisis and economic uncertainty.

“Despite these challenges, the resilience of the market is evident in the substantial 16.6% growth in the number of lots brought to sale.”

And he adds: “While the overall success rate dipped compared to the previous year, the total amount raised showed modest growth at 1.4% compared to the previous year. This dynamic reflects the motivation of vendors in the face of changing environments in both the residential and commercial sectors.”

“This decrease may be attributed to various factors, including variations in property type and size, as well as regional performance.

“Despite this, positive indicators point to a rebound in buyer confidence, especially with the gradual reduction in mortgage interest rates, setting the stage for a potentially bustling January 2024.”

STRONG START

Jamie Cooke, Co-Founder of Iamproperty, says: ““From an auction perspective it’s been a strong start to the new year, with stock levels the highest they have ever been.

Jamie Cooke, Iamproperty

“Contracts back is also very strong for this point in the month, which is indicative of further stock growth and strong inputs.”

And he adds: “It’s really encouraging to see this level of uplift in activity going into 2024, as the demand for auction continues following our highest selling year on record.

“Despite it being a challenging year from an economic perspective, appetite for auction held strong in 2023, and we sold over 9,400 properties across the year, meaning our auction transactions made up 1% of all UK residential property sales for the first time.

“Whilst there’s still a lot of uncertainty in the market, there’s early signs that things are beginning move in the right direction, which is hopefully reassuring for agents and sellers.”

Read the latest Essential Information Group analysis HERE.

Source: Essential Information Group

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Auction House raised more than £641 million in property sales in 2023 the company has revealed.

The UK property auctioneers sold 4,841 properties in the last 12 months – more than ever before in the company’s history – and a number which is up more than a fifth (22%) from 2022.

UNDER THE HAMMER

Offering both livestream and online timed auctions the group had 6,622 properties going under the hammer – an increase of 34% year-on-year.

In May 2023, Auction House offered 707 lots and sold 537 of them, achieving a success rate of 76% and raising £72.65 million – the most successful month in the 16-year history of the group.

Auction House’s corporate client base has also grown, with the commercial agency side of the business adding £48.27 million to the total raised for the company.

Oliver Prior,  National Commercial Director for Auction House, says: “With many of our Auction House Members posting record auction results and activity levels continuing on an upward trajectory there is clearly plenty of life left in the market.”

He adds: “There remains a strong appetite from local and regional investors on the buying side and our success in the room certainly reflects this.”

CONSISTENTLY STRONG

Sales have been consistently strong for the company across 2023, ranging from nearly £71 million in February to more than £62 million in December.

Jeremy Prior (main picture), Managing Director of Auction House, says: “The careful pricing strategy carried out by our network of regional auctioneers continues to reap dividends.

“There is no doubt that intimate local knowledge is enabling us to value properties correctly, which is reflected in our results and continues to set us apart from our competitors.”

And he adds: “We’re all hopeful that the property market is entering into a calmer landscape for 2024. With core inflation easing and the cost of debt beginning to fall, there’s no doubt that things are improving, and this puts us in a fantastic position to continue building on our success as we enter the new year.”

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Consumer demand for property auctions is at a record level. Year to date, Iamproperty has sold 39% more properties via auction compared to the same period last year – over 9,000. Now, one in every 100 properties sold in the UK is by Iamproperty via the modern method of auction (MMoA).

This year, the impact of consecutive interest rate rises affecting the cost-of-living, as well as mortgage rate increases, saw less than average discretionary sellers testing the market. Instead, more serious buyers and sellers not just wanting to (but needing to) transact made up the majority of movers, with a growing number turning to auction for its speed and security.

RECORD auctions

The last 12 months have been a record breaking year for auction sales but what other factors are driving the demand for auction and is the growth expected to continue into next year as the market begins to show signs of softening?

Securing a competitive sale price will continue to be a priority for both estate agents and sellers as we move into 2024.

During the last half of this year the market has seen a rise in already agreed offers being renegotiated far into the process of Private Treaty sales with some buyers pushing for a lower price during the final stages of a transaction.

COST OF LIVING

Impacted by a number of factors, from the cost of living to higher mortgage rates restricting borrowing power, this can lead to unexpected fall throughs if an agreement on price can’t be met.

Auction doesn’t carry this risk, with both the seller and buyer committed to the sale once it is agreed and no renegotiating.

I expect this to continue into next year as the cost of living and mortgage rates remain high. As a result, we’re likely to see more consumers opt for auction as their preferred method of sale due to the security it provides.

fall throughs

At the start of the second half of the year we noticed a higher than usual percentage of referrals coming through from our Partner Agents of properties which had fallen through via Private Treaty.

We understand the difficult position that fall throughs can put agents and vendors in and we’re glad that we’re able to help. Again, I expect to see this continue as we move into 2024, with auctions supporting vendors who may not have initially opted to sell this way but come to rely on it to secure their sale in the face of a fall through and prolonged transaction timeline.

This year, the average time to find a buyer increased to 66 days, up from 45 days in 2022. We will likely see more discretionary sellers re-enter the market in 2024, but for the first part of the year serious buyers and sellers will continue to make up the majority of activity. Their need to move could see more favour the MMoA as their chosen method of sale, for its fast, fixed 56-day completion timescale.

CHALLENGING YEAR

Estate Agents have had a challenging year, with the number of Private Treaty sales approximately 10% lower than this time in 2019. They’ve had to be innovative in their approach to winning new instructions and protecting their sales pipelines.

We’re pleased to see that auctions supported agents to offer consumers a choice of method of sale, meeting their evolving needs and circumstances. More agents than ever before are offering our auctions solution to their clients, and I expect this to continue as we move into next year.

As agents and sellers look ahead to 2024 it’s hopefully re-assuring to see that there is still opportunity out there and that auction can support vendors through any kind of market.

Jamie Cooke is Co-Founder of Iamproperty

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Proptech group Iamproperty is hiring 18 Associate Auction Specialists to join its 500 plus strong team as auction demand reaches record levels with agents and both buyers and sellers opting for the speed and security it can deliver.

The Associate Auction Specialists will manage relationships with Iamproperty’s network of over 6,000 Partner Agents, helping them win instructions and push through sales by managing the auction process and educating buyers and sellers about how it works.

AUCTION SOLUTION

Jamie Cooke (main picture, left), with Co-Founder Ben Ridgway of Iamproperty, says: “We’ve supported agents with an auction solution for over 14 years and demand for auction has consistently grown but its growth this year has been phenomenal.

“Our Partner Agents have just achieved their highest selling quarter to date, so it’s a really exciting time to be joining the team.”

The Neg revealed last week how Iamproperty had signed a nine-figure deal with private equity investment house Perwyn which saw Lloyds Development Capital (LDC) exit the business after four years.

And in a new episode of The Home Stretch podcast Cooke tells The Guild of Property Professionals’ Chief Executive Iain McKenzie how the deal came about.

TREBLED BUSINESS

“We went on a great journey with them (LDC) for four years and probably trebled the size of the business on most levels in that timeframe,” Cooke explains.

Iain McKenzie, The Guild of Property Professionals

“But we shook hands with LDC and welcomed a new partner in the form of Perwyn, another really exciting private equity business.

“They have bought in on a minority stake to support the next phase of the growth of Iamproperty. They are a very ambitious firm and are very focussed on technology businesses, and technology forms a huge part of the iamproperty service offering. They really buy into what we are trying to do in terms of the transactional process for the UK.”

And he adds: “It is a challenging environment that agents are operating in and our objective through Iamproperty is to try and improve that process through technology and through service.”

Listen to the conversation HERE.

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Estate Agents sold a record number of properties via online auction between July and September, with data from iamproperty’s Online Auction Index for the third quarter (Q3) showing that there were 2,530 properties sold online via the Modern Method of Auction – an increase of 31% compared to the same time last year and up 7% against the last quarter.

The Index shows each quarter of online auction sales this year has outsold the last and while winning new Private Treaty instructions remains a challenge agents’ auction sales are growing at pace.

CAPITAL VALUE

Capital Value raised also reached a record figure of over £431 million in Q3, an increase of 5% on the previous quarter and an increase of 27% compared to the same period last year.

Meanwhile sales in August topped £155 million, the most Capital Value iamproperty has ever seen raised in a single month.

The Index also reveals that the South is still seeing the highest levels of growth in auction activity.

In Q3, sales in the South rose by 42%, closely followed by the North which saw a 37% increase – both compared to Q3 2022. The highest selling property during the quarter was in Chiswick and sold for £2.38m – £381,500 over its Reserve Price.

SIGNS OF SETTLING

Jamie Cooke (main picture), Co-Founder of Iamproperty, says: “Whilst we’re beginning to see some signs of settling in the wider market it’s still a challenging landscape for estate agents, with a lower than average number of discretionary sellers and mortgage rates remaining at the higher end.”

But he adds: “There are still people out there both wanting and needing to move and the agents who are able to offer auction as a method of sale to their vendors are feeling the benefit as people are prioritising speed, security and transparency more than ever before which auction was made to deliver on.”

The Neg revealed last week how the North East headquartered proptech group has signed a nine-figure deal with private equity investment house Perwyn which sees Lloyds Development Capital exit the business after four years.

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Agent proptech group Iamproperty has signed a nine-figure deal with private equity investment house Perwyn which sees Lloyds Development Capital (LDC) exit the business after four years.

Perwyn’s own investment criteria for any business is between £20 million to £200 million and its focus now will be to create a bespoke plan for Iamproperty and its Co-Founders Ben Ridgway (main picture, right) and Jamie Cooke (main picture, left). Both will continue to retain a majority share.

CONTINUED COLLABORATION

Ridgway says: “2023 has been a year of continued collaboration with our Partner Agents and our team to drive our next phase of innovation and we are incredibly excited for the future.

“Earlier this summer we announced our vision for the Iamproperty ecosystem and renewed our commitment to transform the property market and pioneer next generation agency solutions.

“With Perwyn now at our side, we are entering 2024 with ambitious plans to continue to grow our core services and deliver a multi-year innovation programme to deliver the Iamproperty ecosystem. There is a great synergy between our teams and we are excited to have their support for our next phase of growth.”

And he adds: “We’d like to take this opportunity to thank Lloyds Development Capital for their support over the last four years through what has been a very exciting period of organic growth and acquisition.”

HUGELY IMPRESSED

Gurinder Sunner, Partner at Perwyn, says: “We have been hugely impressed by the Iamproperty team’s transformative approach to auctions.

Gurinder Sunner, Perwyn

“Their differentiated strategy for market engagement has enabled them to forge a market-leading business in a growing sector.

“Perwyn is delighted to invest in the company, endorsing its vision for an interconnected ecosystem and we are excited to partner with the team to facilitate the next phase of expansion as the business continues to scale.”

Several parties advised on the deal including Iamproperty Non-Executive Director Jon Cooke and Chairman Mark Goddard.

Iamproperty’s financial results for the year ending 31 October 2022 show the North East headquartered proptech group had its biggest year of growth to date, reporting revenue is up by 45% to £55m.

The company increased gross profit by 48% to £26 million during the period, up from £17 million. EBITDA increased by 31%to £7 million, up from £5.5 million.

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Agent users of Bamboo and Alto will now benefit from a new integration which helps them to identify which properties are right for auction and list them directly for online auction.

This solution removes the need for double entry of data and without leaving the Alto software, saving agents time and ensuring a seamless auction experience.

Robin Rathore, CEO and Founder, Bamboo Auctions

“Bamboo’s integration with Alto is a game-changer. Coupled with the launch of our new auction dashboard, our integration will identify appropriate auction stock and give our agent partners the power to list properties without double entry of data,” said Robin Rathore, CEO of Bamboo Auctions.

“Everything we do at Bamboo has one purpose – to help our agents sell more properties. This new integration, coupled with our market-leading support and service, achieves just that.”

Everything we do at Bamboo has one purpose – to help our agents sell more properties.”

Riccardo Dawson, COO, Alto Software

Riccardo Dawson, Chief Operating Officer at Alto, added: “ We’re delighted that our integration with Bamboo Auctions will enable us to launch a new ‘Auctions’ category in Alto Marketplace.

“Not only will this provide a new way for our agent customers to tailor their CRM – but it’s a win-win for sellers too as Bamboo helps them to secure a quicker sale and highlights highest offer scenarios.”

Bamboo Auctions is a fully integrated white-label platform that allows agents to control their own auctions while retaining their branding.

The integration is now available in the Alto Marketplace and agents can sign up here. 

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Auction sales have increased by 11.3% during the past year with nearly £3 billion worth of residential property sold at auction, research from Moverly reveals.

Data from the digital property pack provider shows that despite the average property price under the hammer seeing a dip of 1.8% to £190,871 some £2.9 billion worth of residential property was successfully sold at auction in 2022/23.

PROPERTIES

The number of properties coming to auction in the UK rose from 13,854 lots in 2021/22 to 15,424 in 2022/23.

The growth in popularity has resulted in approximately 40% more property being sold under the hammer in 2022 compared to 2019 – figures matched by Auction House.

The firm posted record sales figures for the first half of this year, selling 2,644 properties between January and July – up more than a fifth (21%) from 2022, and more than ever before at this stage of the year for the group.

Our pricing strategy continues to reap dividends.”

Jeremy Prior (main picture), Managing Director of Auction House, says: “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 rooms are still seeing genuine interest from canny buyers who recognise the right prices when they see them.”

KEY DIFFERENCE

And he adds: “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.”

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