Sales at Auction House were positive in the latest auction on 14th April, with properties sold totalling £15,567,480
This total was very encouraging, with many onlookers predicting that the introduction of the 3% additional Stamp Duty would slow the market.
In total, 79% of lots were sold, many above their guide price.
Performance
During the first quarter of this year, Auction House recorded its strongest performance in its nine-year history. Between January and March, this auctioneer sold 729 lots from 939 offered. This figure was up 14.3% on the same period in 2015 and raised £92.2 million.
This underlines how residential landlords rushed to invest before additional stamp duty surcharges came into play.
Auction House London Director, Jamie Royston, noted, ‘we really didn’t know what to expect at the first auction since the Stamp Duty rises were brought in at the start of April. But with realistic prices agreed from vendors the auction market is still proving to be buoyant-although fears over Brexit are dampening the enthusiasm of some investors.’[1]
Auction House still enjoying record sales
Finding the norm
Founding Director of Auction House, Roger Lake, noted, ‘the auction market will quickly find the new norm, with investor buyers factoring in the new rates of Stamp Duty. There is still a real shortage of housing stock in the UK and population numbers are rising. Rents are pushing up too and first time buyer numbers are increasing aided by the many favourable government initiatives. However, the bigger influence for buyer sentiment during the second quarter this year will no doubt be the debate over Brexit.’[2]
‘The property market never likes uncertainty-and the reduced demand means that more bargains could be found around the country in our auctions during April, May and early June. Our view is that the time is right for prudent investors to dip in rather than duck out, ‘Lake added.[2]
[1] http://www.propertyreporter.co.uk/auctions/auction-market-still-buoyant-post-stamp-duty-rises.html
[2] http://www.propertyreporter.co.uk/auctions/auction-house-announces-record-q1-figures.html