Realism, not pessimism about the UK property market may yet prevent a self-fulfilling prophecy, says Auction House

                                                                                                                                                          

The boss of the country’s largest property auctioneer has called for “realistic but not pessimistic” commentary about the UK property market, to prevent it from talking itself down in a self-fulfilling prophecy.

 

Jeremy Prior, the Managing Director of Auction House says that despite the testing conditions in which the market has had to operate, it has proved itself to be remarkably resilient in recent months.

 

He explained: “No-one is pretending that there aren’t currently challenges out there. The after-effects of the pandemic, the cost-of-living crisis, rising energy prices, soaring inflation, high mortgage costs and weekly strike activity in recent months have made the prospects for property look daunting, to say the least.

 

“However, it’s also true to say that there are signs of improvement on the horizon. Everyone expects inflation to fall as the year progresses, energy costs have recently been following suit and mortgage prices have already become much more affordable. And even with months of industrial action, the labour market has borne up surprisingly well.

 

“Perhaps this is why, according to the Halifax, UK house prices unexpectedly jumped during February. Despite a Reuters poll of economists predicting a 0.3% drop, prices actually rose 1.1% month-on-month – which also followed a 0.2% rise in January. So, even with media claims about house prices falling off a cliff, they are in fact 2.1% higher than a year ago.

 

“Granted, these are not huge figures, but the danger is that a continuing stream of negative stories and commentary about the property market may actually help create the very conditions they are trying to predict.”

 

Auction House sales have continued apace since the start of the year. The group sold 522 properties in February from 673 offered – a success rate of 77.6% and raising a total of £69,776,663.

 

Jeremy Prior added: “The truth is, Auction House is still managing to successfully sell over three quarters of the properties it offers – which is an amazing statistic considering the undeniable challenges we currently face.

 

“For example, take a look at our national online property auctions, which are simply storming ahead. Last month in South Yorkshire, a three-bedroomed semi-detached house in need of refurbishment not far from Sheffield city centre attracted an astonishing 435 interested parties and 243 registered bidders (PICTURED). After little more than 24 hours and an amazing 110 bids, it sold for £126,000 and completed in 14 days.

 

“So quite clearly there is still a very definite market out there for the right property, at the right price, put in front of the right bidders at the right time.”