A growing number of investors are choosing to invest in property, despite the introduction of higher stamp duty purchasing costs and uncertainty around the recent Brexit vote, according to one of the UK’s leading property auction professionals.
Investors continue to be drawn to property, including buy-to-let, as the returns routinely outperform those of other investments, including UK government bonds, cash, as well as stocks and shares, as Auction House’s founding director, Roger Lake, explained: “A new norm is being created out there. Although we may not be back to what you might call a regular auctions market yet, we are certainly moving in that direction.”
Whilst acknowledging that some investors “remain cautious”, Lake pointed out that there are plenty of investors that view the current climate "as an opportunity" to invest in property.
“Property continues to be the highest yielding investment on offer to the general public,” he added. “Demand in our Northern and Midlands sale rooms has remained strong throughout, and we are reporting good success in Scotland too.”
Auction House has just reported a busy and profitable August, with a success rate of 82% and a month which included the sale of the group’s 2,000th property this year.
The property auction firm held seven sales across the country during what is traditionally a quiet period for the sector, selling 113 lots from 137 offered, and raising a total of £12m.
Commenting on the group’s performance, Lake said: “This is another set of excellent figures during a challenging time for the industry – what with the uncertainty of Brexit and the continuing concern over the previous chancellor’s additional 3% stamp duty for landlords and second home buyers. But we are now getting back to usual volumes, and I can also report that September entries are on a par with last year, at 530 lots.”
“All in all, we remain genuinely optimistic and are now focused on getting back to normality as soon as possible,” he added.