Homes sold at auctions are dropping in value and cost around an average 30% less than those bought in private sales.
The latest figures for homes sold under the hammer in September reveal that 2,578 homes were sold across the UK for an average price of £114,401, according to auction price tracker EI Group.
Auction sale prices are about 30% less than average house prices, compared to official figures from the Land Registry, which reckons the price of an average home is £163,367.
The gap between auction prices and private sales has remained around the same over the past year.
Year on year, the figures show average auction prices have increased 1% in line with Land Registry prices – homes at auction fetched £113,449 in September 2011, compared to a Land Registry property price of £162,109.
The figures all show the number of properties going to auction are holding up. Just over 3,500 homes were offered and, 2,578 sold – a success rate of 73.5%.
The number of lots is down 2% on 3,580 in September’s sales a year ago, but the number of sales is up 3.7% on the 2,486 sold – at a success rate of 69.4%.
“In September, 194 property auctions were held nationwide with over 4,000 lots going under the hammer, making September the busiest month of the year so far,” said EI Group managing director David Sandeman
“Over 72% of properties sold during the month, up from 68.8% in September 2011. This is particularly encouraging given that recent press articles are reporting on falls of up to 20% on property transactions in the open market, as the knock-on effect from the Olympics and a continued lack of lending hampers the market.
“The residential market was notably stronger - the monthly sale rate of 73.5% was up 6% on September 2012 as opposed to the 0.8% rise seen in the commercial market.”
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