Auction sales on the rise

The proportion of properties successfully sold at auction soared by nearly two-thirds during the past month, according to Countrywide Property Auctions.

About 79% of all properties which went under the hammer with Countrywide Property Auctions between May 28 and June 12 sold, compared with only 49% during the same period of 2008.

At the same time, 40% of properties sold for more than their guide price, compared with an average of only 7% during the first half of 2009 taken as a whole. In one case, a flat in London sold for 20% above its guide price, while the group also reported a rising number of properties which were sold ahead of the auction.

Mark Tanton, chief auctioneer at Countrywide, said: "During the last quarter, we saw buyers playing a waiting game to see if prices were going to fall further. The mood has changed and buyers are no longer holding back from investing in property. There has been a large increase in demand for properties at auction this month.”

Countrywide said it was seeing a growing number of people buying homes through auctions, as opposed to investment or development properties.

Tanton added: “The demographic of buyers in many of the auction rooms has shifted and we’re seeing a growing number of first-time buyers and parents looking to purchase a property to help their children get on the property ladder.

"Private buyers are now sat alongside our professional buy-to-let landlords and in many cases outbidding professional investors.”

The group held auctions in Manchester, Birmingham, Leeds, London, Bristol and Llandudno during the period, with properties ranging from a former childrens home to modern apartments and starter homes priced from just £39,000 going under the hammer.