0:02 AM, 8th June 2023, About 4 months ago
The property auction hotspots where landlords and investors could potentially snap up a bargain or enjoy a quicker transaction have been revealed.
Digital home information pack provider Moverly has examined the percentage of auction stock compared to all homes on the market to gauge how important property auctions are in those regions.
It found that auction properties make up 2% of all listings nationwide, with the North East leading with 5.3% of listings, followed by the North West (2.9%), East Midlands (2.6%), Wales (2.4%), Yorkshire & Humber (2.3%) and West Midlands (2.2%).
London (1.3%) and the South East (1.4%) have the lowest auction stock percentages.
Ed Molyneux, Moverly’s co-founder said: “Property auctions present good opportunities for buyers and sellers alike, but there are also potential risks to consider on both sides.
“For sellers, an auction can be a route to a fast, reliable sale, often completing within a month of the hammer falling.
“And if the property in question is dilapidated or too unusual to tempt buyers on the open market, auctions attract buyers who are willing to take such investments and projects on.”
He added: “The downside is price – you are unlikely to achieve an open market value for the home because buyers do not attend auctions to pay open market prices – they’re looking to bag a good deal.
“The biggest upside for buyers is the opportunity to bag the aforementioned bargain. This, combined with the speed of an auction purchase make it an attractive way of buying.”
Mr Molyneux also warns that buyers need to be aware of why the property is being auctioned as it might need lots of expensive repair work.
The study also assessed the demand from buyers for an auction home by comparing available properties to those sold subject to contract (SSTC).
For example, if there are 100 auction properties listed and 50 are already SSTC, demand is 50%.
The firm found that the national demand for auction homes is 31% – and the East of England stands out as the region with the highest demand at 37.6%.
Other high-demand regions include the West Midlands (36.9%), South West (36.8%), North East (32.5%), and South East (32.4%).
London (14.2%) and Scotland (26.6%) experience the lowest demand for auction homes.
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