Residential Auction Market
Overview
Following our much-anticipated return to the ballroom in May, our June catalogue was eagerly awaited and very well received. Raising £43.5M with a success rate of 71% is a very strong result, especially on the day that the Bank of England raised interest rates by half a percentage point to 5%.
We witnessed strong demand for well-priced income producing investments and value-add opportunities such as sites with planning consent or redevelopment potential, which seems to be an ongoing trend. The ground rent market continues to be popular amongst property groups and private investors looking for secure long term income streams
As ever, pricing is key in a market that has become more reliant on cash investors over the past few months. In challenging times there is always a flight to quality and therefore the adage ‘location, location, location’ has never been more accurate. Our result does send a very clear message that well priced and well-located assets are still very much in demand, and auction is the preferred route of sale for many vendors in turbulent times when selling swiftly, with certainty and at the best price is one of the primary objectives.
Raised during the 4 auctions this year
Overall success rate
Amount raised during the same period
Auction Highlights Include
LOT 23
Anerley, London, SW20
A freehold former community rehabilitation unit located on a site of approximately 0.5 acres with development potential, which sold for £2.76M from a guide price of £1.75M+.
LOT 39
Putney, London, SW15
A freehold HMO with planning consent to convert into a single dwelling, sold for £2.25M from a guide price of £2M+, having received bids from multiple interested parties
LOT 62
Luton
A freehold former university halls of residence providing 50 bedrooms and two ground floor offices, with planning permission for 28 self-contained flats, sold for £1.6M from a guide price of £1.25M+.
LOT 118
Balham, London, SW12
A freehold semi-detached building arranged internally as two self-contained flats, sold for £1.34M from a guide price of £900,000+.
Direction of Travel
The last two months have seen a steady stream in the number of instructions received from mortgagees and receivers. The remainder of the year is likely to see a marked increase in the number of distressed assets coming to the auction market. It is somewhat inevitable that rising mortgage rates will result in the auction room becoming busier.
