In 2017, there was a small dip in the total sales of property sold at auctions. However, this has not caused pessimism amongst auction houses, who are predicting that 2018 will be a good year for property auctions, PropertyWeek.com reported in January 2018.
Allsop Commercial sold £586m worth of property in 2017, which was a small decrease compared to the 2016 total of £605m. George Walker, a partner in Allsop Commercial, predicts that property prices will not rise significantly in 2018, but sales will be solid.
Oliver Childs, head of auctions at Lambert Smith Hampton also predicted strong sales for 2018.
Although sales in 2017 were lower than the previous year, the buyer and seller base grew. Some auction houses reported that there were around 20% more buyers in 2017, including many from overseas.
Allsop has launched an online platform, which makes it easier for both UK and overseas buyers to bid on commercial and residential property. It is expected that the use of online auctions and other digital technology will increase in 2018.
Although sales are not expected to reach 2016 levels, auction houses are optimistic about 2018.
If property auction sales are strong in 2018, this will benefit specialist bridging finance lenders that are used by buyers to complete the purchase of property purchased at auctions. Property needs to be paid for within 28 days after an auction. There is often not enough time for commercial or standard mortgage funds to be available by this deadline, so bridging finance is used until longer term funds are available