The market experienced a notably challenging month, with overall lots offered down 19.5% to 2,144 lots and lots sold down 23.1% to 1,498 lots. Auction revenues dropped 24%, from £267m in June 2017 to £203m in June 2018.
Whilst the numbers are certainly alarming they are perhaps reflective of the challenging market conditions and economic backdrop that we find ourselves in. Growing speculation of an impending interest rate rise, Brexit uncertainty and ongoing high-street woes are all factors that are affecting confidence amongst buyers and sellers alike.
Recent reports suggest that it isn’t just the auction market feeling the strain – there is simply a decreasing numbers of private treaty buyers, causing a slowdown in sales and putting downward pressure on prices.
On 3rd July, Allsop held a commercial auction in London where there was a very rare break up of a large portfolio of HSBC banks. A charitable foundation raised almost £19m from the sale. It had bought the sale and leaseback portfolio from the bank in 2008 and all were let to HSBC until 2023.