Residential property auction sales did well during August, with the number of lots jumping and the success rate sharply increased.
Around 20% of the lots were repos, with buy-to-let investors active.
In August, there were 449 lots on offer, compared with 349 in August last year. Of these, 78.4% sold, compared with 58% last August.
While August was a quiet month, with just 47 auctions held as opposed to the nomal monthly average of 120, Essential Information Group managing director David Saneman says that August’s strong figures are indicative of how the auction market is faring, compared with a pattern of declines at the Land Registry.
Chris Baguley, director of specialist lender Auction Finance, said: “It is likely that more repossessed properties will be sold in the auction room towards the end of the year and into 2012.
“We’re experiencing an increase in demand for finance as investors snap up homes going under the hammer. With repossessions, lenders want to achieve a sale quickly and therefore there are opportunities to buy properties at a low price.”
Meanwhile, Network Auctions – whose member estate agents contribute properties to its regular sales at Hatfield House – has recorded its best-ever event, with an 80% success rate, raising a record £6m.