Average values of used LCVs at auction across the board rose by 7.7% from £4,346 to £4,681 between September and October, according to data from the National Association of Motor Auctions.

Total sales witnesses a healthy increase of 14.9% from 7,929 to units.

Demand for vans and pick-ups of all ages has remained high, suggesting business confidence has strengthened and the economy is improving.

The volume of LCVs being sold at auctions across the UK grew sharply in October, yet helpfully, the average age and mileage of these lots was lower.

As a consequence, says, NAMA prices responded positively and conversion rates hit a high of 78% which sets the scene for a strong close to the year. The strength of the demand for used LCVs at all years In October seems encouraging, according to NAMA. The average price of an LCV sold at auction moved to £4,681, representing a healthy uplift of 7.7% over September spread across the age bands.

There were significant increases across each age band in October, with the ranks of less than two years old LCVs up by 52%.

Alex Wright, chairman of NAMA Commercial Vehicle Group said: "October highlights a buoyant month for the LCV sector - volumes, conversion rates and prices grow by 14.9%, 5% and 7.7% respectively, and average age, mileage and number of days in stock each fell by a significant amount.

"Vehicles perceived by buyers to be at the end of their life will find the market could become overloaded. It is possible that buyers are going to have to pay more for lesser lots with vendors needing to maximise returns from ageing stock that is in short supply. The key is going to be keeping supply and demand in balance and managing expectations as to what lies ahead.

"We anticipate the first half of 2014 to do encouragingly well thanks to the UK’s growing economy and speculation as to just how long these buoyant market conditions are likely to prevail, should be replaced by implementing actions that ensure that they will be long lived."

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