A strong showing from private investors helped Allsop raise £61.1m at their November residential property auction, held at the Cumberland Hotel in central London.
Despite heightened political and economic uncertainty following the EU referendum, as well as the introduction of higher property taxes for those investing in property, no fewer than 149 lots were acquired by investors – 71% sales success rate – last Thursday, with one particularly popular lot, Levens, a 11,000 sq ft house on Broadwalk in Winchmore Hill, north London, selling for £4.21m.
Development sites also proved popular, such as lot 61 - a cleared, freehold site in Chalk Farm with planning for nine apartments - which sold for £3.31m.
Overall, income-producing lots attracted the most competitive bidding, according to Richard Adamson, partner and auctioneer at Allsop.
He said: “The general mood in the auction room was one of positivity underpinned by sensible caution. There is still concern from buyers and sellers due to the political uncertainty, but there was clearly an attitude of ‘back to business’. As a result, there was an inevitable flight to quality, as buyers honed in on good quality and reliable income producing investments due to the poor returns being offered in other investment sectors.
“In particular, lots guided over £1m performed very well, especially given the fact that most buyers are incurring much higher purchase costs than they were a year or so ago. This indicates that, albeit reluctantly, the market has absorbed and adjusted to the SDLT surcharge.
“The market is moving all the time, especially regionally. Aligning sellers and buyers price expectations is as challenging as ever, but it’s a sign of an unpredictable market. Given the interest we have experienced already following the auction, we anticipate a busy week as we continue to transact on lots.”