It seems as if the frenzied housing market has extended to the auction field, with one major player reporting a strong start to the year.
Auction House is reporting its best-ever January having sold 61 lots in the traditionally quiet first month of the year, raising £6.1m and marking four consecutive months of a ales ahead of the previous year.
“This continuing hunger for sale by auction is a clear indication that sellers and buyers are capitalising on the demand fuelled by the Stamp Duty holiday. Indeed, auctions are now the only remaining method available to ensure buyers benefit from this temporary tax break before it expires on March 31” claims Auction House founding director Roger Lake.
“The lead time between entering and exchanging contracts is now down to just three weeks at auction, compared to what can be longer than three months by private treaty” he continues.
“We are able to do this because alongside our regular regional sales all over the UK, we hold a National Online auction every Thursday throughout 50 weeks of the year. Being able to offer a speedy sale is a major attraction to vendors who are in a hurry or want to select the specific date on which they sell.”
Lake says the auction market for landlords and other buyers is undergoing massive change, thanks to the increased flexibility offered by Livestream and Online Auctions.
“We are running more regular events to meet the needs of our sellers. We are selling more lots prior to auction when our vendors prefer it, and we are able to tie-up more post-auction sales too. Together with selling on the day, the outcome is a noticeably higher success rate.”
He concludes: “Some commentators are suggesting that the end of the Stamp Duty holiday means that private treaty demand will collapse over the coming months. We think differently – not only because our entries are priced to sell, but also because our pool of repeat buyers are continuing to purchase regularly.
“The desire to sell seems stronger than ever; Covid restrictions have highlighted people’s urgency and auction is delivering at an exceptional level.”