July 2016 EIG Newsletter - Latest property auction results now available
Welcome to the July newsletter that looks back at auction activity in June and preceding periods. In the past month the UK has taken the historic decision to leave the EU, sending immediate shockwaves through the global economic markets and resulting in significant changes at the very top of our country's political tree.
It is perhaps no surprise to see the property auction market retract slightly during this period of uncertainty, with figures showing a 10% fall in lots offered (from 2,950 to 2,662 lots) and a 12% fall in lots sold (from 2,239 to 1,961 lots). However, it should be noted that these numbers are still high when compared with the years of recovery that followed the property crash in 08-09. History also shows us that the auction market is usually very quick to respond and I expect confidence to return before long - indeed a cursory glance at July's catalogues indicate a busy period ahead!
As ever I would welcome any comments or feedback you may have regarding the newsletter or indeed the wider market in general.
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National Auction Analysis
The residential auction market saw falls of 6.6% in lots offered and 8.8% in lots sold last month, and a 16.3% decrease in amount raised. Despite these falls, the quarterly and rolling yearly figures remained largely positive due to a strong run of results in the months leading up to the EU referendum. Overall 254 more lots were offered in Q2 this year compared with the same period in 2015 (up 3.8%), whilst lots sold increased by 1.9% to 5,129 lots and the amount raised by 4% to £785.8m.
The commercial market also suffered as a result of pre-Brexit speculation. Lots offered fell by 25% in June, from 507 to 380 lots, whilst lots sold decreased by 30% from 381 to 267 lots. Despite the sharp fall in sales the commercial revenues fell by less than £3m, from £36.49m to £33.9m, and the quarterly figures and yearly figures actually show growth in this regard by 14% and 12%, to £300.55m and £1.446bn respectively.
The July edition of the EIG newsletter is now available on our website where you can also view all prior issues.