COMMENT After five or so years of challenging market conditions, by the end of 2019 things finally appeared to be on the up. Savills had achieved a strong set of December results and, as we entered a new year, it seemed as though confidence was returning across the industry.
Out of February came our best success rate for four years as well as our highest sales figure since 2017 and it was at this point that we began to look at our March auction and the year ahead with real optimism. Suggestions that 2020 could move us into a new cycle in the auctions market certainly seemed like a plausible school of thought.
Yet it was shortly after this that Covid-19 became a prominent feature in the news agenda and later the implementation of official guidelines to reduce transmission of the virus saw measures put in place to reduce social contact. This meant that for auctioneers and the real estate sector as a whole, we needed to adapt our ways of working to meet changing requirements.
As a team we made a decision early on that our March sale simply couldn’t go ahead in its usual ballroom setting as we had to protect the welfare of both our clients and staff. We were keen to provide a platform for both buyers and sellers that was accessible, straightforward, reliable and familiar. Remote bidding was the obvious route to market. Offering the opportunity for buyers to bid via proxy, by telephone or through internet bids is something we have had in place for many years, with all three proving popular and successful among those unable to attend in person. But what came next was a first for both Savills and the industry, as we made the necessary arrangements to conduct a remote-bidding-only auction sale.
Communicating remote bidding plans with our clients was the critical first step to ensure that things ran smoothly and the feedback we had from phone calls only went to highlight the belief and faith that they held in what we know to be a tried and tested vehicle for selling properties. For those newer to the remote bidding process, we provided guidance and reassurance. Regular e-mail communication and utilising our social media channels also helped to underline the message that we were well prepared with the tools, team and technology to be able to deliver positive results. We were also determined to be able to reflect the experience of our ballroom sales as much as we could and that meant setting up a live video stream for people to be able to view the sale taking place as well as ensuring that live results could be accessed from our website.
Truly remarkable
By the day of the auction, official advice had been updated. This meant that our sale was led by a single auctioneer from home, supported by nearly 30 Savills colleagues all based remotely who came together united via technology to help power the auction. Over the course of eight hours, Robin Howeson single-handedly auctioned the entire catalogue. What we were able to collectively achieve was truly remarkable.
Final results came in at £18.4m with 67% of properties offered going under the hammer. Five seven-figure sales took place, ranging from a corner office building in East Dulwich, SE22, which sold for £1.1m, through to a semi-detached Queens Park house, NW6, which went for £1.7m. Competitive bidding was in play throughout, in some cases lots went significantly over their guides and our live stream was viewed by an audience of circa 10,000. We even had people watching from around the world.
The response from clients was really positive and for those who had property to sell, as well as others who didn’t, what they saw unfold during the March auction has given them confidence to list their properties for May.
Significant milestone
The successful delivery of a remote-bidding-only auction was a significant milestone for us and our business. Several departments came together to act as one. We demonstrated that we can adapt where required to be able to service our clients efficiently and effectively, even if the parameters of how we do it have changed temporarily.
It’s clear that the coronavirus pandemic will affect all aspects of the UK housing market, and of course auctions fall into that bracket. By looking at previous downturns, coupled with what has happened in China, Savills’ research team has sought to identify what Covid-19 could mean for those operating in the residential sector. At the time of writing, what they have set out is that economic forecasters predict the UK is facing a short, sharp shock that will affect all aspects of the market over the coming months, with transaction volumes rather than values bearing the brunt of the shock. But, assuming government measures can limit any long-term damage to the economy, they conclude that the market has the potential to recover relatively quickly once restrictions on doing business are lifted.
We are now well into the planning stages for our May auction, which will follow the same format as our March sale. What we don’t know at this stage is for how long we will be required to auction property remotely. But what is evident is that now more than ever, the coming together of our auctions department, assisted by Savills’ support teams, the creative use of technology and the regular interaction with our clients has never been more important.
Christopher Coleman-Smith is director of national auctions at Savills
