Whilst we continue to enjoy new entrants as buyers to ourmarket, the make up of the sellers is fairly constant.
The biggest seller of the year has been one fund manager, who continues to reposition their mostly retail portfolio and selling via a campaign that we have conducted alongside the Allsop Private Client Desk. This allows longer marketing periods with sales exchanged on auction contracts which has proved highly effective over the last six months.
Corporate sellers have also included a major bank, who have sold a portfolio of mostly vacant former banking halls. Ladbrokes/Coral have conducted two successful sale and leaseback programmes with assets across the UK.
Over 60% of sales are derived from Private Property Companies and Private Investors in an increasingly fragmented market.
Our Buyer’s Survey, asked at the point of exchange, picks up on trends and sentiment amongst buyers which helps us look forward.
The key findings are that buyers are seeking ever larger lot sizes, with 40% seeking lots over £1m against 35% last year. Geography has become less of a concern, as buyers are more deal driven, than local to the properties, there has also been a significant increase in overseas investors during the year perhaps taking advantage of the weakness in sterling.
We continue to attract new buyers with 17% not having bought at auction before.
Finance continues to be sought for these purchases, although the majority are in cash, 73% which is broadly in line with 2018. Finance looks to have become harder, with a reduction to 12% from 15% seeking LTV above 50% according to the survey.
This year, the survey was altered to capture the reasoning behind the buyers purchase. Income was stated as the main driver by 66% of buyers in the room, reflecting demand for the long income assets, the weight of the lease and it’s components in place.