Residential Auction Market
So far this year (to the end of Q3), Allsop Residential Auctions has raised £260.4Mwith a sales success rate of 77%. 960 lots have been sold from a total of 1247 offered over five sales.
Our most recent auction sale on 19 September brought some welcome relief to the market. Despite choppy political waters, the result calmed concerns by demonstrating a steady demand for realistically priced property. At the time of writing, £41M has been raised overall with 80% of the catalogue successfully sold. The room was well attended and bidders, both present and remote, competed enthusiastically. The auction room continues to be a lively and functioning market place.
Highlights of the sale included a vacant building of around 5,450 sq ft in Chelsea’s Redcliffe Gardens. It was knocked down for £3.9M. The property was arranged partly as a House in Multiple Occupation and was sold with planning permission for reconfiguration to form 15 self-contained flats. Also a freehold block of six self-contained flats at Cutbush Court, Danehill, Reading was knocked down on behalf of receivers for £675,000. This unbroken investment was fully let on assured shorthold tenancies and producing £54,900 per annum (8.1%).
The September auction established that demand is not limited to London and the south east. The Old Brewery in Carlisle, Cumbria for example, comprises six freehold buildings arranged as 28 self-contained units. The property is part Grade II Listed and was offered with planning permission for change of use to provide a mix of 36 affordable dwellings. It was sold under the hammer on behalf of a housing association for £400,000.
Reserve prices were often exceeded and attendance was good. Although there was no particular sector from which discernible trends were identifiable, it was apparent that the quality of enquiries leading up to the day was high.
Allsop’s next residential auction sale will be held on 31 October at The Event Suites at Great Cumberland Place (formerly The Cumberland Hotel), London W1. The catalogue comprises some 220 lots.
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