The latest property auction to be held in London saw a diverse portfolio of residential properties help ensure an 82% success rate for Auction House London at the Landmark Hotel in central London.
Some 80 out of 92 lots sold, raising almost £16.5m. As ever properties with development potential with or without planning permission and smaller refurbishment projects were popular.
Despite the recent introduction of the new 3% stamp duty on second homes and buy-to-let investments, a number of properties attracted fierce bidding and sold above their guide price.
Speaking after the auction, Auction House London director, Jamie Royston, said: “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.”
Highlights of the sale:
There is not much that you can buy in London for £107,500 when it comes to property, but one shrewd investor managed to snap up a studio flat in Plumstead, SE18, for that price. What's more, the property is currently let on an AST producing an annual rental income of £8,400, generating a gross rental return of 7.8%.
A first and second floor split level one-bedroom flat situated within a mid-terrace building in Swiss Cottage, NW3, was acquired with vacant possession for £278,000, which appears to be money well spent, given that comparable flats in the local area are selling for £400,000-plus.
Another studio: a first floor flat in Streatham, SW16, which was available subject to an AST producing £10.680 per year, was acquired for £175,000, generating a gross rental return of 6.1%.
Auction House breaks sales record
Auction House UK, a network of property auctioneers who cover the whole of the country, operating more than 40 auctions rooms nationwide, recorded its best ever quarter between January and March this year, beating all previous records in the nine-year history of the company.
The firm offered 939 auction lots, selling 729 of them, and raising close to £92.2m in the process as property investors rushed to acquire property ahead of the introduction of a stamp duty surcharge on 1 April.
The next sale for Auction House London takes place on 8 June 2016 at the Landmark London Hotel in Marylebone NW1.
Upcoming property auction dates in London:
Andrews & Robertson at Hotel Russell, 1-8 Russell Square, London, WC1B 5BE 12:00
Harman Healy at Chelsea Old Town Hall, Kings Road, London, SW3 5EE 12:00
MS Auctions at Radisson Blu Portman Hotel, 22 Portman Square, London, W1H 7BG 12:00
McHugh & Co at The Montcalm Hotel, 34-40 Great Cumberland Place, London, W1H 7TW 12:00
Network Auctions at the Grosvenor House Hotel, 90 Park Lane, London, W1K 7TN 14:00