There is nothing that markets dislike more than uncertainty and surprises, and the Brexit vote unleashed considerable forces of uncertainty. But despite claims that UK house prices would collapse if Britain voted to leave the European Union, the housing market has remained remarkably resilient.
Home sales remain stable, while property prices are holding firm, which largely explains why investor demand for property remains strong, as reflected by recent activity in the property auction market, according to Richard Adamson, a partner at Allsop, the UK’s largest property auction firm.
Allsop raised £62.8m at its first residential auction of 2017 last month, selling 80% of the 247 lots on offer.
A high number of property investors attended the auction, attracted by the wide array of properties on offer, both geographically and by property type, with the average lot size hitting £330,000, and Adamson expects to see equality strong demand from property investors ahead of the company’s March auction next week.
He said “There was a large turn-out at our first residential auction of 2017, with buyers undeterred by the changing economic and political landscape, and we expect to welcome similar crowds to this auction.”
Allsop’s upcoming residential auction will see 235 lots auctioned on 30 March at The Cumberland Hotel on Great Cumberland Place, London, W1H 7DL.
The catalogue, which is available here, includes a diverse mix of investment and development opportunities.
Adamson added: “Whilst there is the usual diverse offering in the catalogue, in particular there are some excellent lots in central London, as well as permitted development opportunities. We are seeing considerable appetite for permitted development sites, including regionally.
“We have also noticed increased interest from investors in the student market. Student accommodation has outperformed other asset classes in recent years, providing strong rental growth, so investments such as Lots 167, 162, 163 and 95 are likely to attract competitive bidding.
“Overall, there is high demand from buyers in the auction room – our challenge is making sure we have sufficient stock to meet this demand.”