Residential Auction Market
The first 6 months of 2025 have been very challenging for most transactional markets however Allsop’s Residential Auction team seems to have bucked that trend with almost £190M raised during that period with an average success rate of 80%, having sold 685 lots under the hammer. Early indicators suggest that the second half of this year may well be similar, with our recent June, two day sale raising £55M with a success rate in excess of 80%.
In terms of trends, investors have, for some time, been chasing income producing investments with a keen eye on yield. We are yet to see yields sharpen as a result of the interest rate cuts earlier this year but this may well change in the coming months especially if the direction of travel remains a downward one from the Bank of England. Whilst the development sector has been challenging for some time there is still plenty of appetite from small developers and those looking for ‘doer-uppers’ where there is the opportunity to add value in the short term.
Q2 Results (April – June Auctions)
Lots sold to date
Total amount realised/sold to date
Total success rate to date
Who is selling?
The seller profiles at our residential auctions have typically remained the same over a number of years now, with our catalogue featuring lots on behalf of housing associations, councils, government bodies, receivers, administrators, property companies, funds, and private investors. The common theme amongst almost all these seller types is their exposure to debt and the need to raise capital to cover their increased cost of finance. Over the past 6 – 12 months there has been a noticeable increase in volumes especially from both housing associations and distressed sellers using the auction route to release capital in a timely and transparent fashion especially when traditional private treaty sales are stalling or failing to get across the line.
Much has been made about private investors and portfolio owners exiting the market recently due to concerns over rental reform, an increase in stamp duty and of course the cost of finance impacting on re-finance deals. We have, as expected, seen a reasonable uptick from sellers that fall into this category, but it seems more often than not these sellers are reducing their holdings to bring down their LTVs and manage the long-term costs of new finance deals. This trend may well continue for the remainder of this year and beyond as investors’ current low fixed rate offerings come to an end.
April 2O25 - Highlights
Lot 135: Haven Lodge, 62 Clay Lane, Coventry, West Midlands, CV2 4LN
INVESTMENT - Freehold HMO Building
Key Features
- Thirty One Units are Subject to an Assured Shorthold Tenancy, Four Units are Vacant
- Internally arranged to provide Thirty-Five ensuite Bedrooms
- Each Unit benefits from a double bed, an ensuite shower room, small kitchenette and desk area
- The Building is within a Gated Development which benefits from Parking
- A range of local shops and amenitites can be found within walking distance
- Regular bus routes run from directly outside the property on Clay Lane servicing the stations and city centre
- Coventry Rail Station provides regular and direct services to London with a fastest journey time of 55 minutes
Total Current Rent Reserved £253,920 p.a. (equivalent)
Sale Price: £2,255,000
Gross Initial Yield:11.26%
Lot 224B: Gilsland Spa Hotel, Gilsland, Brampton, Cumbria, CA8 7AR
VACANT - Substantial Freehold Former Hotel
Key Features
- Internally arranged to provide Ninety-Three Hotel Rooms
- Site Area approximately 4.05 Hectares (10 Acres) of Gardens and Woodland
- Shops and amenities are located in Gilsland Village to the south
- Haltwhistle Rail Station is approximately 6.5 miles to the south east
- The UNESCO World Heritage Site of Hadrian’s Wall is nearby to the south west
Vacant Possession
Sale Price £800,000
May 2O25 - Highlights
Lot 94: 5-13A West Street, Reigate, Surrey, RH2 9BL
VACANT - Freehold Mid Terrace Buildings
Key Features
- Internally arranged to provide a total of Fourteen self contained Flats and Three Commercial Units
- Eight Flats (One x Studio Flat, Four x 1 Bedroom Flats and Four x 2 Bedroom Flats) are Vacant
- Six Flats are subject to Long Leases with approximately 997 years unexpired
- The Three Commercial Units are subject to a Long Lease with approximately 999 years unexpired
- Reigate Station (Southern Railway) is easily accessible
- Local shops and amenities are available within walking distance
- Gatton Park and Reigate Heath are both easily accessible
Vacant Possession of Eight Flats
Sold Prior
Lot 9: 160 Bethnal Green Road and 4 Chilton Street, Bethnal Green, London, E2 6DG
INVESTMENT - Freehold Corner Building
Key Features
- Arranged to provide a Restaurant Premises and Three Recently Refurbished Self Contained Two Bedroom Flats
- Restaurant subject to a Commercial Lease. The premises trades as Tas Firin, an established and very well regarded Turkish restaurant which has been trading from the premises since 2003
- Each Flat is subject to an Assured Shorthold Tenancy
- The refurbishment also included new bathrooms, engineered hardwood flooring throughout and upgrading the common parts. The restaurant was full refurbished and redesigned in 2024
- Total GIA approximately 260 sq m (2,808 sq ft)
- Shoreditch High Street overground station is within approximately a 5 minute walk to the west
Total Current Rent Reserved £152,200 p.a. (equivalent)
Sold Prior
June 2O25 - Highlights
Lot 296: New Summerseat House, Summerseat Lane, Ramsbottom, Bury, Greater Manchester, BL0 9UD
VACANT - Substantial Freehold Detached Grade II Listed Manor House
Key Features
- Most Recently Used as a Pupil Learning Centre
- Comprising a Dilapidated Former Manor House occupying Grounds extending to approximately 2.83 Hectares (6.99 Acres)
- Possible Development Potential, subject to obtaining all necessary consents
- Well located for the amenities of Ramsbottom, Bury and surrounding areas
- Drone Video available below
Vacant Possession
Sale Price: £1,575,000
Lot 19: Park Gate House, 250 Seven Sisters Road, Finsbury Park, London, N4 2HU
VACANT - Freehold Block of Self Contained Flats with Commercial Ground Floor Subject to a Long Lease
Key Features
- Internally arranged to provide Eighteen x 1 Bedroom Flats and Two Retail Units (subject to a Long Lease)
- The Retail Units are subject to a Long Lease with approximately 975 years remaining
- Flat 18 is Fire Damaged
- Finsbury Park Rail and Underground Station is opposite the property
- Shops and amenities located along Blackstock Road to the east of the property
- Virtual Tour available below
Vacant Possession of Eighteen Flats
Sale Price: £4,350,000
Buyer profiles
Traditionally the auction market has been very reliant on cash buyers with time constraints making traditional finance difficult to obtain in such a short space of time. The challenging economic back drop, especially the higher cost of finance and the cost-of-living crisis has undoubtedly provided a lot of opportunity for cash rich private investors. However, over the past 6 months, as interest rates have slowly come down, we have seen more buyers returning to the market and more buyers saying they are raising finance for the purchase. If, as predicted by many, interest rates continue to come down slowly over the coming 6 months we may well see more investors return to the auction sales which will provide some very welcome depth to buyer pools and that all important competitive tension when it comes to bidding at auction.
From a geographical perspective the vast majority of buyers are domestic but there still are some international buyers purchasing assets at auction.
Looking ahead
We are expecting a very busy 6 months ahead with a total of 5 sales still to come in H2 and with plenty of motivated sellers using our auction platform to raise capital there is likely to be plenty of opportunities for investors and developers across the country. Pricing, as ever, is a key component to a successful auction sale but with large catalogues full of high quality stock from well-respected and focused sellers, buyers are likely to continue returning to our auctions to deploy capital and those choosing to sit on their hands may well look back at 2025 as a lost opportunity.
