A rising number of investors are beginning to turn away from residential property and instead of looking to the commercial property market.
That is the view of James Emson, Managing Director of Clive Emson Auctioneers, who believes that investors are being deterred by recent tax hikes.
Mr Emson said that recent sales have been given a lift mainly by commercial investors, wit the phasing out of mortgage interest rate relief and introduction of 3% additional stamp duty taking their toll.
The most recent statistics from the firm show that national auction sales of commercial lots rose by 16% last month in comparison to the previous year. This has taken the total value raised to £190m.
Commenting on the results, Mr Emson said: ‘We are noticing a definite trend towards commercial property sales as investors seek to widen their portfolios. The increased popularity of commercial lots comes as continuing record low interest rates help boost the market while residential sales are not helped by interest rate relief and stamp duty changes.’
In its most recent auction, Clive Emson sold property worth £15m and achieved a sale rate of over 70% from 139 lots.