Residential Auction Market
Our post-election December auction ended the year, the decade – and four years of uncertainty – on an extremely positive note. The atmosphere in the ballroom of the InterContinental was completely different to any sale held by Allsop for a while. Bidding was brisk and competition keen. Reserve prices were often exceeded by a surprising margin. At the time of writing, the total from the sale stands at over £51m and the success rate at 83%. This brings the total for the year to over £351m and 79%. It would seem that we have turned a significant corner.
The largest lot of the December sale to sell under the hammer was a freehold student block known as London House in High Wycombe, Buckinghamshire. It was arranged as 42 en-suite bedrooms across eight apartments. Each bedroom was let on an assured shorthold tenancy and the total current gross rent reserved for the academic year 2019/2020 was almost £246,000. The lot was knocked down for £2.1m.
The most valuable lot of the catalogue was sold post auction having been marketed with a guide price of £5m+. 16 Prescot Street, Whitechapel, London E1 was a former magistrates’ office used as a restaurant with residential accommodation above. This Grade II Listed building extends to around 815 sq m (8772 sq ft) and was let and producing £98,700 pa.
We are pleased to have turned the page on 2019. It was a challenging year. Although sales volumes were down across the industry, we were encouraged that prices remained reasonably stable. Sellers remained robust when negotiating, particularly post auction. Many who did not need to sell postponed their decision to do so. Cautious buyers withdrew from spending until certainty was restored. The wind has now changed and we look forward to active trading over the forthcoming year.
Allsop’s first residential sale of 2020 will be held on 13 February at the InterContinental Hotel, One Hamilton Place, Park Lane, Mayfair, London W1J 7QY.
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