Property finance lender, Auction Finance Limited, is experiencing significant growth in lending, surpassing pre-credit crunch levels, as auction property purchases boom, (as reported this week by Auction House UK).

The award winning Manchester-based company has more than doubled the number of loans it has financed over the past 12 months and has increased the value of its average loan by 22.3%.

The announcement comes as the latest figures show a seven year high for UK’s auction houses, with lots sold in October 2013 up  30& compared to October 2012, the highest ever recorded level for that month. These record figures have now surpassed pre-recession auction house transactions.

The residential auction market saw a substantial double-digit increase in October year-on-year in both lots offered, up 26.6%, and lots sold, up 38.3%. The total revenue raised climbed by over 51% year-on-year to £298 million.

The commercial auction sector is also showing gains across all aspects. Lots sold in October 2013 were up over 9% on the same period last year. Yearly sales to October 2013 increased by 11% on the previous 12 months.

Scott Hendry, director of Auction Finance, said: “These figures are fantastic news for the industry. As the leading principal lender solely dedicated to the auction market, we are seeing a dramatic rise in the number of people turning to the auction houses to buy property, which has led to a 50 per cent increase in the amount of funding we have provided in the past 12 months.

“Buy-to-let investors in particular favour the auction house to buy properties with speed and at bargain prices and we’re committed to making fast and reliable funding available in order for them to develop their portfolios.”