A flooded residential auction market has led to a substantial decrease in success rates, and London is leading the slide.
The capital posted the biggest decrease in success rates in the residential market over the past quarter, according to the latest figures from Essential Information Group.
London saw a decrease of 7.6% in average success rates between May and July 2014, compared with the same period in 2013, taking the likelihood of a London home listed at an auction selling to 78.8%.
It represents the sharpest decline in success rates seen in the capital since September-November 2009, when the figure declined by 12.4% as the credit crunch began to bite.
The slide also takes the quarterly average to its lowest level since June-August 2012, when the rate dipped to 78.4%.
Auction House London auctioneer Andrew Binstock said the change could be expected as more properties came to market without time on the private treaty market. “The market has visibly cooled, but the amount of people looking to try auctions is on the up,” he said.
In early 2014 more than 90% of all residential lots offered at auction sold.
Underlying demand remains far stronger than in recent years, however, with total volumes changing hands rising from £237m between May and July 2013 to £282m during the same period this year – a 19% increase.
In addition, the total amount of stock coming to market has increased, with 925 lots offered over the period this year against 819 in 2013.
Resi success rates: percentage change on May-July 2013
East Anglia 5.5%
East Midlands 2.7%
London -7.6%
North East -3.7%
North West -6.3%
North West Home Counties 5.8%
Northern Ireland 13%
Scotland 12%
South East Home Counties 2.5%
South West 4%
Wales -5.4%
West Midlands 2.3%
Yorkshire & the Humber 5.4%
chris.berkin@estatesgazette.com
