However, in the current climate, it appears that savers are now looking at the arts and antiques market as a safe haven for their money. Indeed, in the £1-£1000 tier the net balance jumped from –45 to 33, while the £50,000+ tier moved less dramatically from –23 to 6 indicating that as more buyers are walking through auction house doors, the interest extends beyond the wealthy.
A lack of transactions in the housing market has affected the number of goods offered at auction; this has increased demand for quality items and has pushed up lot prices. However, despite a depressed housing market, the sale of furniture has seen a turnaround with 12 percent more Chartered Surveyors reporting a rise than a fall in all lot prices compared to 40 percent reporting a fall than a rise in Q4 2008. Surveyors believe that many house owners are either preparing for an upturn in the market or have decided to nest while they wait for the economic climate to improve.
For the first time in the history of this survey, Chartered Surveyors are reporting a rise in the Oil and Watercolours market with a net balance of 10 percent more surveyors reporting a rise than a fall compared to -47 percent reporting a fall than a rise last quarter. In contrast contemporary art is still in negative territory with 38 percent more Chartered Surveyors reporting a fall than a rise. This demonstrates a return to more traditional arts and antiques markets.
The Jewellery and Silver sectors continue to remain resilient; with, respectively in these areas, 50 and 36 percent more Chartered Surveyors reporting a rise than a fall. Buyers are continuing to invest in Jewellery and Silver as gold and silver prices continue to rise and stocks and shares fall.
Confidence is high for activity in the market for Q2, with 31 percent more Chartered Surveyors anticipating an increase in the number of lots offered and 39 percent more Chartered Surveyors anticipating an increase in demand over the coming months as homeowners clear out garages and seasonal art and antique fairs revive interest in the market.
RICS spokesperson, Jeremy Lamond said:
“The start of the year has seen a renewed interest in traditional fine arts and antiques as buyers continue to seek tangible investments away from traditional saving avenues. Buyers are also looking to the lower end of the market with lots under £5000 continuing to perform exceptionally well. Lack of supply is not deterring the public from bidding at auction and we expect this to continue in coming months as buyers see the value in investing in arts and antiques.”
