Allsop, the UK’s largest property auction house, has posted its lowest success rate since 1995 for the commercial auction market.

Allsop’s commercial auction in July had a success rate of 60%, which was well below its 2007 average of 87%. The latest auction raised a total of approximately £20m, which is 60% down on May’s amount that was raised despite the success rate being only 2% down on May’s auction. This indicates that both the fall in property prices and the lack of mortgage finance is beginning to have an effect on the auction market.

The auction market is often seen as an indicator for the rest of the property market. With the figures for Allsop’s recent auction being down in every area, the effects of the credit crunch and an increasing lack of confidence in the property market continue to make themselves felt.

James Cannon, head of commercial auctions at Savills, told PIN: “Commercial auction success rates are currently running between 60 and 70%, so I think Allsop’s is about the norm. The shock for Allsop was the fall in the volume of sales to £20m. We are finding that there is a high capacity at our auctions but people are generally being more cautious although some investors are still looking for bargains and good returns. The money is out there, but people are much more selective. It is currently difficult for smaller investors to judge the market. Auctioneers need to reflect the market clearly with similar valuations across the different auction houses.”