Residential property auction sales decline
Landlords and homeowners across the United Kingdom woke up to some mixed news during the first days of the New Year, as the number of repossessed homes sold through auctions dropped markedly throughout most of the country, even as other figures continued to show high repossession rates. In fact, the decline in auctions surpassed 50 percent, compared to figures published at the end of 2008. But some warn that there may be more to this falling trend than a significant decrease in repossessed properties. Auctioneers interviewed by the Financial Times argued that in some cases, repossessed real estate may simply be sold in a more “discreet” manner, by employing estate agents. Some government-owned or sponsored banks in the UK realized that repossession was a sensitive political issue, and have looked for a less conspicuous way to sell their properties.
The decline in the number of homes sold through auctions fell by just under two thirds over a 12 month period While 3,998 repossessed homes were auctioned off last year, this figure stood at 8,222 in 2008. Banks in the UK also appear to possess fewer residential properties than last year. The Essential Information Group conducted research into recent repossession trends and found that bank property possessions declined from 23,600 at the beginning of 2009, to 18,000 by the autumn.
David Sandeman leads the Essential Information Group and he noted that the most recently released property auction figures do not seem to correlate with the fact that repossessions continue to rise in the UK. But on a more positive note, observers expected repossessions to increase at a far faster rate than what actually transpired in 2009.