From ballroom to laptop — and back?
WHAT AN unbelievable 12 months it’s been. Not just for us auctioneers but for the property industry as a whole. While the pandemic sent huge swathes of the economy into mass closures, lockdowns and unprecedented turmoil, the property market has held up incredibly well. More than that, all the major property portals have claimed record levels of traffic as agents across the land have seen their enquiries increasing month on month. The last five auctions have set record sales levels for Auction House London, as ever higher numbers of bidders register for each passing auction and more properties are listed each time. There have been endless stories of properties selling for levels far beyond anyone’s expectations and I honestly think if you asked any auctioneer how the past year has been, they would all tell you, humbly and coyly, that business has never been better.
But why has a pandemic led to such an upsurge in buyer demand? I remember clearly when “lockdown one” started, back on March 23 last year — we had exactly eight days to completely redesign the auction that we had already launched to convert it from a ballroom-style theatre production like every auction prior, to an online live-stream sale — something no UK property auction house had done before. We were the first auction taking place post-lockdown, so all eyes were on us. We, Auction House London, were going to be the guinea pigs for the future of our industry. (A touch dramatic perhaps, but you get the point and it was unbelievably stressful.)
We had to reinvent the way bidders would register and bid at auctions, redo all our contracts, terms etc. I had to learn new skills on the spot as the auctioneer. We worked round the clock to get everything prepared. But it turned out to be an incredible pivotal moment for our company and the industry as a whole.
Bidders have loved it. No longer do they have to traipse to a hotel with limited parking in the heart of London. Now they can sit in their pants at their laptop and bid away without the fear of giving away a crucial advantage by not being in the room. No one else is in the room either. And when they are outbid, they simply switch off and go about their day.
Vendors are also delighting in the new method. They are still benefiting from the high energy and my obsession with extracting every last bid. I just shout down a camera lens instead of to a full room.
As pioneers of this new method of auctioneering, we have seen increases in the number of lots, number of sales and volume of bidders at all of our auctions over the past 12 months. I dare say most of my peers would say the same for their own auctions. Even those that have opted not to go down the livestream route, with a real auctioneer conducting the bidding but rather use the computer to be the auctioneer, eBay style. (In my opinion only a human can truly get a feel for when there may just be two bidders left and the increments need to be changed in order to extract one or two extra bids. But that’s a debate for another time.)
So where does it all go from here? We have this discussion repeatedly in our office and whenever I speak to my fellow auctioneers. It’s a genuine dilemma. Do we go back to the rooms and enjoy the theatre and the social environment that they bring, along with the extra costs of venue hire etc? Does a live auction in a ballroom actually achieve more money? Or do bidders without the ability to see each other end up paying more? And with the cost savings being made, some of which can be passed to our clients, is everyone currently winning? For now, these are all questions that do not have a definitive answer. A lot will depend on people’s feelings over the risk of being in a room with 500 other people. Covid has not gone away, after all.
In my humble opinion, I think it is unlikely anyone will change their status quo this side of the new year but I expect all the first auctions in 2022 will be back in rooms, the old fashioned way. For me personally, as one of the more eccentric and theatrical auctioneers, nothing beats the drama and the excitement of a live auction room.
Another fascinating trend due to the pandemic is that London is no longer the most desirable place to buy. With the new work-from-home culture meaning people no longer regard it as critical to live right in the heart of city centres, there has been a huge upsurge in demand for properties in coastal towns, with Cornwall well documented to have seen prices sky-rocket.
Plots of land have been particularly popular recently too, especially in desirable residential areas. I think back to our last auction where a plot of land in St Albans with a reserve price of £10,000 ended up selling for £153,000 after a furious bidding war. It seems people are now looking at great places to live outside of London and are happy to build their own home! That said, the desire to buy simple freehold houses in poor condition, with the scope to add value, has still not dwindled.
So all in all, our industry is in great shape for the time being. I hope it continues to stay resilient and all being well, we should be back in the auction rooms within the next few months.
Stay safe, everyone.
Nothing beats the drama and excitement of a live auction room’