Q1 at auction: the most active auction market we've seen to date

Auction is gearing up for further growth with a traditional strong spring market anticipated off the back of a record-breaking quarter of auction sales. Capital Value raised by iamproperty Partner Agents in Q1 2024 was the highest we've ever seen in a single quarter, surpassing £450m for the first time. Read on as I explore the impact auction is having on the property market.

Record auction activity

Between January and March, auction seriously levelled up its impact on the property market, with 2,588 properties sold via iamproperty, an increase of 14% compared to the same period last year. This surge highlights the growing demand for auction as an alternative method of sale and builds on last year's success, which saw iamproperty sales account for 1% of all property transactions in the UK- a real milestone for auction.

Improved market conditions

Auction’s strong start to the year is attributed to the continued rising demand and improved market conditions.

In our latest consumer insights report, which saw us survey over 600 people, those who said they were ‘ready to sell their home’ in early 2024 listed the following as the main reasons for this being the right time to make a move:

• 29% reported being in a stronger financial position

• 14% said it was because of the cost of living coming down

• 12% attributed it to the property market becoming more active

• 10% cited lowering mortgage rates

These factors have enabled more vendors to re-enter the market with confidence, creating conditions for a strong spring market.

Agent success

Heightened auction activity in Q1 resulted in significant gains for iamproperty's Partner Agents, including £9.5 million in fees paid, which is a 23% increase compared to the same quarter last year. Partner Agents continue to benefit from using auction as a listing tool by offering vendors an alternative method to suit their needs and therefore winning more instructions.

Consumer demand

There was a huge spike in property auction related Google searches from consumers across Q1, with searches for ‘housing auction’ and ‘property auction’ hitting their highest rates since summer 2023, and discovery questions prominent around ‘types of auction’ and ‘selling your property at auction’. With 56-day completion timescales^ and a 95% success rate, consumers are turning to auction for its speed, security and transparency.

Q2 outlook

After such a positive start to the year, I'm going into Q2 with real optimism that we’ll see a ‘traditional’ strong spring market. While the prospect of a potential general election looms, there’s a good window of opportunity over the next few months for agents to take advantage of the current market conditions.

Throughout Q1, we witnessed a maintained rise in our agent network using auction as a listing tool to win new business and this is expected to continue. The demand from consumers for choice is something that continues to grow, and auction enables agents to deliver on this.

Looking ahead

The surge in auction sales during Q1 due to continued rising demand and improved market conditions has supported a solid start to the year for our agent network. Despite a challenging market in 2023, our Partner Agents had their best year of auction sales to date. Now, with the market in a more positive place and building on last year’s momentum, there’s huge potential to see even more auction success throughout 2024.

For further Q1 insights, including regional auction data, read iamproperty’s Q1 Online Auction Index now.

* From receipt of draft contracts. Based on grade one standard properties.

^ From receipt of auction fee. Must qualify. Not applicable to caveated or £400k+ properties