The traditional auction house has emerged as a beacon of resilience in the face of a fluctuating housing market. Auction House, the UK’s largest property auctioneer, has reported a remarkable 20 percent increase in property sales for the first eight months of this year compared to the same period in 2022.
Between January and August, the group successfully facilitated the sale of 2,913 properties, a notable increase from the 2,424 properties sold during the corresponding period the previous year. Furthermore, even during the traditionally quiet month of August, Auction House managed to outperform expectations with a remarkable 11 percent growth, selling 269 properties compared to 242 in the preceding year.
Jeremy Prior, Managing Director of Auction House, expressed his views on this impressive surge, stating, “As these figures show, the auction market is simply getting busier and busier. But as a company, what we’ve managed to crack is the ability to track down those elusive buyers who are still prepared to open their wallets. Because, without doubt, there are now some excellent opportunities for investors out there.”
These revelations come on the heels of predictions made by Hamptons, indicating that rents are set to increase four times faster than house prices over the next four years. Utilizing data from the Office for National Statistics and the Bank of England, Hamptons forecasted a potential 25 percent surge in rents by the end of 2026, in stark contrast to a 5.5 percent growth in house prices.
Auction House is also observing a significant influx of properties entering its September auctions, with 897 lots listed—a notable increase compared to the 600-650 properties typically seen in previous months.
Jeremy Prior further elaborated on the current market dynamics, stating, “The market is clearly going through a very active period. In part, this is down to the fact that we’re witnessing the departure of a number of over-leveraged landlords. But although buyer demand may have decreased, properties coming onto the market are being sold to those canny investors who have cash in the bank and who are not so reliant on borrowing.”
He added, “Buy-to-let properties make up a significant proportion of our stock—with many of those in lower price brackets. And the truth is that lower-value properties often have the highest buyer demand because they tend to attract a better rental yield than higher value properties. And even if there’s another rise in interest rates this week when the Bank of England’s Monetary Policy Committee meets on 21 September, we would agree with the majority of economists predicting that a 0.25 percent hike from 5.25 to 5.5 percent may well represent the peak in UK interest rates.”
As the housing market continues to exhibit signs of volatility, the auction house sector appears to be thriving, providing both investors and sellers with a promising avenue for navigating these uncertain times.