Posts with tag: auction

UK auction market remains stable

Published On: June 27, 2017 at 1:38 pm

Tags: auction,auction market,landlords,property,residential market

Investment in UK residential property at auction continues to perform well, despite the political uncertainty generated by the snap General Election.

That is the synopsis provided by the latest figures provided by the Essential Information Group.

Data from the report indicates that 2,422 lots were sold during the last month, up by 2% in comparison to May 2016. This represented a healthy sales rate of 75.7%.

Stable

Despite the result of the Election, EIG’s MD David Sandeman said that he was pleased to report on results that were, ‘largely strong and stable.’

Overall, the residential sector performed well during the last month, with lots offered up by almost 5% to stand at 2,560. Lots sold also rose by nearly 10% to stand at 1,945 lots.

Amounts realised from residential sales hit £338m, up by £27m, or 8.9% from the £311 seen in May 2016.

These rolling quarterly figures given by EIG, which had recorded double-digit declines in April, now show only small falls in lots both offered and sold.

UK auction market remains stable

Commercial Challenge

While demand for residential property increased during the month, the commercial sector faced a rather more challenging month. Lots offered and sold fell by 15% and 20% respectively, with the amount raised sliding by 16% to £179m.

The overall statistics for May were:

Overall Statistics May 2017

Auctions Held in the UK             130
Total Lots Offered                 3,199
Total Lots Sold                        2,422
Percent Sold                          75.7%
Total Realised           £517,003,228

Concluding, Mr Sandeman said: ‘One hopes that this was merely a blip in what has otherwise been a reasonably steady year to date for commercial auctions.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/6/uk-property-auction-activity-is-strong-and-stable-despite-political-instability

UK property auctions market sees decline

Published On: April 27, 2017 at 10:33 am

Author: Em Morley

Categories: Property News

Tags: auction,auctions market,investors,landlord,Stamp Duty

The property auctions market in the UK continued to slow during the last month, with both the number of lots offered and sold sliding.

Data from a report by the Essential Information Group (EIG) shows that overall lots offered fell by 6.5% in the last month, from 2,962 to 2,769.

Lots sold also fell, by 5.7%, from 2,188 to 2,064.

In addition, the total raised at auction slipped by £32m to £402m, a fall of 7.3% from the £434 raised in March 2016.

Activity

The annual decline can be largely attributed to the surge in market activity seen between February and March last year, as investors rushed to complete deals before the Stamp Duty changes in April.

David Sandeman, managing director at EIG, said: ‘We may also be witnessing a market which is just easing back the throttle a little,” he said. “It wouldn’t be unsurprsing either, considering that the government has recently introduced measures to try and cool the buy-to-let market whilst house price inflation has also seemingly slowed.’[1]

Despite the fall in numbers, Mr Sandeman observed that it was encouraging that auctioneers are experiencing an average sale rate of 75%

The table below shows how the auction market fared in March 2017:

Overall Statistics March 2017
Auctions Held in the UK	127
Total Lots Offered	2,769
Total Lots Sold	2,064
Percent Sold	74.5%
Total Realised	£402,196,601

UK property auctions market sees decline

Instructions

The residential sector saw instructions slip by 9.3% over the last month, while sales fell by nearly 8% to 1,646.

Mr Sandeman went on to observe that the figures: ‘should not be cause for alarm’ as the decline is almost entirely due to ‘record-breaking activity’ seen in Q1 last year.[2]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2017/4/uk-property-auctions-market-is-easing-back-the-throttle-a-little

Investors remain active ahead of festive period

Published On: December 20, 2016 at 3:40 pm

Author: Em Morley

Categories: Landlord News

Tags: auction,investment,investors,sales,UK housing market

It is currently a time of cooling off for the UK housing market as Christmas approaches. However, there are still some signs that investors are remaining highly active.

A clear sign of this was the outcome of Cheffins’ auction in Cambridge last week, where £1.65m worth of sales was achieved across 13 lots. This represented a sales rate of 77%.

Activity

Ian Kitson, associate at Cheffins, said: ‘December sales often feature slightly smaller catalogues than the rest of the year, but there was good interest in a range of the lots throughout the marketing period, suggesting that buyers remain motivated regardless of the looming festive period.’[1]

‘We saw a good turnout on the day and achieved strong prices across the board. The sale of 77% appears strong compared to some of the results being reported nationally and we can attribute this to the quality of lots on offer, as well as the popularity of our region,’ he continued.[1]

Investors remain active ahead of festive period

Renovation

It appears that investment properties offering good opportunities of redevelopment attracted the most interest, with bidding and results well over guide prices across multiple lots.

The lot fetching the highest value offer on the day was a development site of 0.2 acres in Westfield Road, near Cambridge. This site had planning permission for the demolition of an existing bungalow, with the creation of two detached houses. This lot eventually sold for £419,000.

Mr Kitson also noted: ‘Renovation projects and investment opportunities were definitely the most sought-after lots of the day at this month’s auction. Previously the mainstay of property developers, we are actually seeing a shift in the types of person who look to purchase renovation projects, with a larger number of owner-occupiers entering the bidding.’[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/12/investors-remain-motivated-regardless-of-the-looming-festive-period

UK Auction market activity slows during November

Published On: December 16, 2016 at 2:29 pm

Author: Em Morley

Categories: Property News

Tags: auction,Buy-to-Let,buy-to-let landlords,investors

The UK auction market has experienced another quiet month, according to new figures released for November.

Usually, the auction process, with no property chain and buyers and sellers entering an immediate contract, is attractive to investors.

However, the most recent data released from the Essential Information Group (EIG) indicates that auctioneers saw a fall in lots sold during the last month.

Fall in auction sales

Results show that the number of property auction lots offered fell by 7.6% during November, from 2,341 to 2,163 lots. In addition, lots sold slipped by over 10% to 1,591 lots from 1,774 in November 2015.

Despite this fall in sales, further data from EIG shows that auctioneers recorded increased revenues of 2% from £272m to £277m.

Taking the residential auction sector as a whole, there was a fall of 1.1% in lots offered during the last month, from 1,990 to 1,969. In terms of lots sold, this number fell from 4.7% to 1,508 to 1,437. Residential revenues were up from 7% to £239m to £255m.

UK Auction market activity slows during November

David Sandeman of EIG, said: ‘These results are indicative of the market’s form over the last six to nine months and are perhaps unsurprising given that the economic and political backdrop has changed markedly during this period.’[1]

‘It would be a brave man to predict what the future holds in 2017, but one can be sure that auctions will continue to provide a quick, transparent and effective means of buying and selling property,’ he added.[1]

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/12/uks-property-auctions-market-softens

Sheffield’s property market showing steely resilience

Published On: October 27, 2016 at 11:21 am

Author: Em Morley

Categories: Property News

Tags: auction,Brexit,Sheffield,Sheffield property market

Investors in Sheffield remain confident in the housing market in the city, if the latest auction results are anything to go by.

Mark Jenkinson & Son’s most recent auction in the Steel City saw sales of nearly £3.8m, suggesting that the property market is buoyant following the Brexit vote.

Sales

The auctioneer present said that he managed to sell 30 out of 35 lots on offer, including three post-auction transactions.

Sales at the auction at Sheffield United’s Bramall Lane included an old people’s home and a public toilet!

Adrian Little, auctioneer and partner at Mark Jenkinson & Son, believes the sales represent a ‘healthy state of affairs’ in the city’s housing sector.

The highest price fetched on the day of the auction was £415,000 for an eight-flat building in Steade Road, Nether Edge.

Sheffield’s property market showing steely resilience

Positive

Mr Little observed: ‘I think the sale was a really positive example of what’s going on in the market. It’s (the sales success rate) probably higher than it was at the peak of the market in 2006 and 2007. It’s a very strong overall level.’[1]

Little believes that the auction is a small barometer of what is going on in the wider market in the city. He believes that investors are continuing to purchase property at auction as they are ‘confident’ that it remains the best way to invest in bricks and mortar.

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/10/sheffields-property-market-remains-very-appealing

Auction market activity falls in September

Published On: October 13, 2016 at 1:44 pm

Author: Em Morley

Categories: Property News

Tags: auction,market activity,property auction,residential property

Latest figures provided by the Essential Information Group reveals that property auction market activity continued to slow during September.

The report shows that the volume of lots offered and lots sold both fell during the month, by 6% and 8.5% respectively. The overall amount raised also fell by 8.4%.

Falls

Alongside the falls seen in July, it is unsurprising to learn that the quarterly figures are also down on last year. Sales fell by 6% to 6,145 lots from the 6,559 recorded in Q3 of 2015.

Revenues are also down over 11% to £956m from £1,079bn.

David Sandeman of Essential Information Group observed: ‘It should be noted, however, that these falls are still dwarfed by the drops we saw back in 2008 and 2009, when double-digit decreases were evident almost every month.’[1]

Auction market activity falls in September

September statistics

The figures below show how overall statistics for auction fared during September:

Auctions Held in the UK 181

Total Lots Offered 3,647

Total Lots Sold 2,626

Percent Sold 72%

Total Realised £390,373,625 [1]

Both residential and commercial property saw falls in lots offered during the last month. Residential instructions fell by 5.5% from 3,345 lots to 3,160. Commercial instructions fell by 8.1% from 530 lots to 487.

However, despite falling by around 10% in September, the residential amount raised by properties being purchased at auction is up 8% year-on-year.

[1] https://www.propertyinvestortoday.co.uk/breaking-news/2016/10/property-auction-market-activity-continues-to-contract