Residential property sales at auction decrease
3rd Mar 2008
The number of residential property sales at auction has fallen significantly over the last year, it has been claimed.
According to the Royal Institution of Chartered Surveyors (Rics), tighter lending conditions and uncertainty over house price prospects has discouraged buying at auction houses.
The organisation maintained that only 57 per cent of residential properties put up for auction were sold in the fourth quarter of 2007, compared with 69 per cent in the last quarter of 2006.
However, the number of properties offered at auction increased during this period, with repossessions accounting for around one fifth of these in 2007.
Oliver Gilmartin, economist for Rics, said: "Fears over further house price falls have taken some stimulus out of achieved sales at the auction house as specialist lending has all but evaporated.
"While lots offered at auction have stabilised, we expect a tougher year for many at the margins in 2008 as mortgage providers become more selective."
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