Did you know that properties that are sold at auction can sometimes cost 32% less than the average house price?

EI Group has estimated that approximately 1517 homes were sold at auction in November 2012 across the UK, for an average £122,131.  Official home figures from the Land Registry who run one month behind auction figures put the average house price at £161,605 for October.

The pricing gap has increased between estate agent pricing and auction pricing being at 30% different for most of this year, 2012.   With the homes that were sold at auction in November for £185 million, brings the approximate total for the year to 18,970 home sold at auction at an average price of £117,400.

As expected, the residential market witnessed large increases in the month. Over 2,000 lots were offered, up nearly 20% on last year, whilst the number of lots sold escalated to 1,517 – up 38% on November 2011,’ said EI Group director David Sandeman.

This large rise in residential sales helped push the success rate up to 74% – the highest monthly rate seen throughout 2012. The sizeable increases seen in the monthly figures can be largely attributed to a major London residential auction house holding their Autumn sale in November this year as opposed to October last year. That notwithstanding, the rolling quarterly and yearly figures which offer a longer term view of the market conditions also show encouraging increases across the board.’

Just over 2,056 homes were offered at auction and the sales represented 73.8% of the total.

The number of lots is up 20% on 1,718 offered in November’s sales a year ago, while the number of sales was up more than 15%.

The comparison figures differ from lender and estate agent prices as they are based on actual sales rather than asking prices or loan advances.

Interested in becoming a landlord?

If you are thinking of becoming a property landlord why not take a visit to the Auctions and see if you can grab yourself a bargain?

Remember to include in all your costs your landlord insurance from The Insurance Octopus.  This will protect you and your assets should the worst ever happen to your property.

Call us today to a comprehensive and tailored quotation.

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