Auctions: the success story that’s set to run
Whether online or in the room, auctions are a buyer or seller's best friend in 2021, thanks to speedy exchanges, quick completions and ‘from anywhere’ access.
The 2020 property industry was full of surprises, SDLT holiday and soaring sales set against a global pandemic. Success was obvious in the auction - in fact, nearly 40% more property by value was sold at auction in 2020, compared to 2019, reports unbiased.co.uk
Auctions records are tumbling in 2021
Now, as 2021 moves into its second quarter, it’s clear buying and selling property at auctions is a trend that’s here to stay. Figures from SDL Property Auctions show that the ‘new year, new home’ mantra holds firm, with a record-breaking number of registered bidders for its first auction of 2021. The live-streamed event saw over 2,000 interested parties step forward - 69% more than its previous peak in June 2020
Records were also broken over at auctioneers Mark Jenkinson & Sons. Its first auction of this year saw an all-time high number of bidders, who snapped up 33 lots totalling almost £5 million. The story was reflected at Auction House London, where best-ever January results marked a run of four consecutive months where each set of sales figures were ahead of previous years.
A head start in the race for completion
While an extension of the stamp duty holiday has been a welcome boost to the buying and selling market, the March Budget announcement has created two new deadlines that play to the strengths of the auction sector in 2021.
Roger Lake, the founder director of Auction House London, reminds buyers and sellers that it is the auction method – whether that’s a physical ‘in the room’ auction or an online event – which offers the quickest route to completion. He highlights that exchange happens as soon as the gavel falls, and that the lead time between entering and exchanging contracts is now down to just three weeks at auction.
This is a critical benefit to anyone hoping to make the 30th June deadline (zero stamp duty on the first £500,000 of a purchase ends) or 30th September (zero stamp duty on the first £250,000 of a purchase ends) deadline.
More auctions, more choice, more accessibility
It is Toby Limbrick, a director at Network Auctions, who confirms more owner-occupiers are coming to the auction sector, not just investors and developers. As well as auctions happening more frequently and becoming accessible to all, thanks to live stream technology and online auctions, he says home movers are increasingly looking to maximise their finances and control their budgets in terms of both buying and selling – with auctions offering a degree of certainty as well as the possibility of a bargain buy.
Director and head auctioneer at Regional Property Auctioneers, James Vandenbrook, agrees with the sentiment, commenting that the parallels between a familiar ecommerce retail environment and online auctions have given more buyers the confidence to purchase at auction. Additionally, the closing of physical auction rooms has presented new advantages, with a greater number of interested parties able to take part due to no geographical restrictions.
If we were to report on auction activity in six months time, we are most certain that there will have been another upwards trend in the number registered buyers, catalogue lots, successful bids and sales values.
Auction lot viewings made easy
Viewber is here to support auctioneers and buyers over the course of 2021, as we already do for the majority of top auctioneers. We make taking on and showing property easy, anywhere in the UK. Our vetted Viewbers can create marketing assets for auction catalogues, including photos, videos, virtual tours, floorplans and property reports and of course conduct the open houses required, at the touch of a button, to make sure you maximise returns from each sale.