The auction house, a go-to choice for landlords, is defying the housing market’s downward trend. Auction House, the UK’s largest property auctioneer, has sold 20% more properties this year than in 2022, with 2,913 lots sold from January to August compared to 2,424 last year. Read more in the blog.
In August alone, traditionally a quiet month, the group sold 269 lots, an 11% increase from the previous year. According to Jeremy Prior, Managing Director of Auction House, the auction market is becoming increasingly active, with opportunities for investors on the rise.
The release of these figures follows Hamptons’ predictions of rent outpacing house price growth. Hamptons forecasted a potential 25% rent increase by the end of 2026, compared to a 5.5% growth in house prices, based on Office for National Statistics and Bank of England data.
Auction House reports a substantial increase in entries for its September auctions, with 897 lots compared to the previous three months’ 600-650 properties. Jeremy Prior, Managing Director of Auction House, attributes the market’s activity partly to over-leveraged landlords exiting the market. Despite reduced buyer demand, properties are being purchased by savvy investors with available cash, particularly in the buy-to-let sector, which often offers better rental yields in lower-value properties.
Regarding potential interest rate hikes, Prior aligns with the majority of economists predicting a 0.25% increase from 5.25% to 5.5%, possibly marking the peak in UK interest rates.
Moreover, recent data from the Royal Institution of Chartered Surveyors (RICS) suggests that the auction market’s resilience might continue. RICS reported an increase in auction sales across the UK, reflecting strong demand for property investments. This aligns with the trend observed in Auction House’s performance, indicating a robust and potentially lucrative market for investors.
These developments indicate that the auction house sector is not only weathering the challenging housing market but also providing viable opportunities for those looking to invest in property.
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