Residential Auction Market
Overview
Our August Auction delivered the highest amount ever raised by a national residential auction team. The overall amount raised currently stands at £46,985,900 with a current success rate of 99%.
This is an exceptional and unprecedented result, especially within a period where mortgage rates were at their highest for over a decade. The Bank of England base rate rose from 5% to 5.25% on the auction date itself (3rd August) – however, investors, property groups and developers were undeterred with their intent to purchase at auction. There were two interesting statistics from our August auction; the first being 18 lots sold prior and notably 18 lots were sold after auction. The largest lot on the day sold for £2.55M which was a development opportunity in Surrey.
August Results:
Overall success rate
Auction Highlights Include
LOT 67
South Croydon, London, CR2
VACANT - Freehold Former Care Home
Sold Prior in excess of £1.9M
‘There continues to be demand for well-priced opportunities across the country.’
The following auction took place over 3 days in September and provided both ‘in room’ and ‘streamed’ auctions to suit all buyers’ needs. The total number of lots across 3 days amounted to 509. The last time we had an auction with more lots was November 2008, amidst the height of the GFC which comprised 996 lots across 4 days.
Our 3 day September auction realised a current total of £67,168,050 at a success rate of 88%. Interest rates remained unchanged at 5.25% which boosted investor confidence. This was demonstrated on a number of lots which exceeded reserve and, one lot in particular more than tripled reserve; lot 278 – 4, Charnwood Avenue, Dudley , West Midlands, which eventual sold for £224,500 - having started the bidding at £60,000.
‘Buyer sentiment and confidence boosted.’
Selected highlights September
LOT 21
Fulham, London, SW6
VACANT - Freehold Building internally arranged to provide Two Self Contained Flats
Sold: £887,500
LOT 30
South Kensington, London, SW7
INVESTMENT - Share of Freehold Self Contained Second Floor Flat
Sold: £850,000
Direction of Travel
We anticipate that there will be an increased number of distressed properties being sold by way of auction leading up to Christmas and into Q1 2024. Whilst it appears that interest rates have possibly peaked we anticipate a bottle neck of underperforming ‘buy to lets’ that will eventually come into the market both consensually and on behalf of administrators/Receivers in the foreseeable future. With buyer confidence becoming restored, we anticipate a busy period ahead.
