Some 18 months on, we’re only just beginning to understand the impact of Covid-19 and how it’ll shape the future economy and the UK housing market. Not only have we seen a huge shift in what consumers are looking for, such as home offices, larger gardens or escaping to the countryside, it seems that the tide is also turning for estate agents.
We recently surveyed a sample of agents on their general attitudes to buying and selling homes in a post-Covid world. Our data found that their openness to auction has changed as a result, with 77% agreeing that auctions are likely to be the way forward when it comes to buying and selling property.
A buoyant market is encouraging competitive bidding
Across the market, house prices have risen in line with a huge increase in demand. The competitive nature of the market has also meant buyers using arguably unscrupulous, but legal, gazumping to secure their dream home now happens on up to a third of purchases (according to CompareTheMarket) driving up prices.
Similar competition can be seen amongst auction buyers. We’ve seen a huge boost in the number of total bids received, with over 27,000 bids in 6 months which is 3 times as many versus same period last year and in 2019.* However, the risk of gazumping is mitigated by the commitment to the sale, as reservation fees are paid by the buyer, reducing disappointment and allowing sales to progress at pace.
Our survey of agents showed many were in agreement that the current market is supporting this boost in auction success, with over 71% agreeing that auctions are more effective when the housing market is buoyant.
Buyers and sellers are seeking speedy results
Many of us have felt like the last 18 months have been one long waiting game. This, coupled with the stamp duty holiday, saw a rush to get sales over the line. The deadline also highlighted the frustration linked to delays within the Private Treaty process which can take over 100 days to complete.
Some 90% of agents surveyed agreed that auction offers a real solution for vendors that need to complete quickly, taking only 56 days. With many of the other parts of life we enjoy on hold, consumers are looking for an accelerated experience on a purchase that usually signals a new chapter.
It’s time to experience auction success
In recent years we have seen a change in the way people engage with auction and the Modern Method of Auction (MMoA) has demonstrated it can work in all market conditions, with great results whether you are a seller, buyer, or Agent. We’ve seen a big shift in the last 6 months and are really positive about the future of auction. The promise of a competitive environment to result in the optimum outcome for buyers and sellers, alongside the speed and security, means that now is a great time to add auction to your portfolio.
For more information on movebutler, you can visit https://www.iamproperty.com/services/auction/
*iamsold’s number of bids on auction properties from Jan-end of June 2021 vs the same periods in 2020 (10,418) and 2019 (10,941).
*Jamie Cooke is managing director of iamsold