Property auctions are feeling the effects of the 'credit crunch', with a marked reduction in the number of properties sold in the final quarter of 2007.
Only 57 per cent of properties going to auction in late 2007 were sold, compared to 69 per cent at the end of 2006. This equates to 4,539 properties, down by 9 per cent on the third quarter of 2007.
However there was little change in the number of properties being offered at auction. Indeed the total number of residential properties going to auction in 2007 rose by 15 per cent - perhaps fuelled by a surge in the number of repossessions.
Repossession figures have already climbed beyond expectation in 2008, a trend which is forecast to continue over the course of the year.
RICS economist, Oliver Gilmartin 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.
“Whilst tightening credit conditions will be most acute for those with a poorer credit history, less generous loan amounts and the introduction of some upper limits on loan advances could equally hit the mid-tier of the market, increasing the number of properties languishing on auction property books.”
