A study conducted by Cyber Compare (www.cybercompare.net) found that the average auction price paid for a Premium .UK domain has been falling for the last three years in a row.

“After looking at the data of 3698 domain name sales that completed between 2009 and 2012, we found that the average sale price for a domain has fallen by 23% from £316 down to £246 in 2012. ”

“The decline has been gradual between 2009 and 2012, as shown below:

– 2009 Average Sale Price £316

– 2010 Average Sale Price £316 (0%)

– 2011 Average Sale Price £269 (-15%)

– 2012 Average Sale Price £246 (-23%)

“We also evaluated 3 letter domain name sale prices over the last 4 years, as these have traditionally been considered a safe investment because all 3 letter combinations have been registered. ”

“The sale prices of 3 letter domain names over the last 4 years have dipped and since risen back:

– 2009 Average Sale Price; £444
– 2010 Average Sale Price; £354
– 2011 Average Sale Price; £375
– 2012 Average Sale Price; £436

Based on 211, 3 letter domain sales.

Anthony Shapley, Managing Director at Cyber Compare comments “We weren’t at all surprised by the outcome of this research; the online marketplace has massively changed over the last 4 years becoming much more diverse with people focusing more on Mobile Apps. We’ve seen Google take away some of the SEO benefits of Exact Match Domains in September 2013, which will have inevitably slowed the pace of sales and reduced the value of these domains.”

Anthony then continued on “On top of that Nominet, the governing body for UK Domains has been pushing proposals and shortly revised proposals to release a new shortened .UK tld, on top of the existing .co.uk which has created uncertainty in the market, potentially causing people to hold off making big investments in .co.uk domains. Whilst fighting through the financial crisis of 2008 which continues on.”