It said the top 20 commercial and residential auctioneers have seen a 16 per cent increase in property sold at auction in 2004, at a total value of £3.38bn.
RICS claimed that more people are turning to auctions to buy and sell property because of the simplicity and speed of the process, with deals agreed on the day. It added that auctions have become more open and transparent, and often an ideal place to find competitively priced properties.
Most buyers are currently private investors. Auction properties for sale come from a variety of sources, including private sellers, investment funds, government agencies (such as the Met. police and the army) and banks. An increase in repossessions also means there is more property coming up at auctions.
To accommodate the growing popularity of property auctions RICS has published 'Going once, going twice, sold to...' - a new guide to help owner occupiers, developers or investors. It provides inside information on the auction process from both buyers' and sellers' points of view, from checking guide prices to proxy or internet bidding.
According to Richard Auterac, Chairman of RICS' Real Estate Auction Group: "Properties on sale at auctions are usually available at a competitive price. Auctions also provide a platform for open and fair competition between bidders. Once the hammer comes down, neither the seller nor buyer can withdraw and the process is completed within a set time - with no danger of any link in the property chain breaking.
"Auctioneers recognise that to keep auctions at the forefront of the property market they need to deliver a professional service which responds to the changing needs of their clients."
