Allsop saw strong results at its May residential auction despite growing wariness among investors across the UK.
By close of business, the firm raised £65 million and achieved a success rate of 73%. Post-auction sales have since then reached a final total of £67.4 million with a 75% success rate. This also saw one of the largest catalogues of the year, with over 300 properties initially up for auction.
Buy-to-let investors who have been hit with dwindling tax relief and the stamp duty surcharge against a backdrop of political uncertainty expressed caution on the day. However, many were keen to snap up lots that were sensitively priced and of high quality.
These included a number of investments in London and the South East. Lot 26, for example, an unbroken block of flats in the affluent commuter town of Royal Tunbridge Wells achieved £3.08 million – the largest lot sold on the day.
In London, lot 164, a corner property in Fulham with a ground floor shop and a lower ground floor with residential accommodation on the first, second and third floors – with planning permission for four self-contained apartments – raised £1.54 million. Meanwhile, lot 80, a large property in Croydon comprising seven self-contained flats sold for £1.56 million.
Investments across the regions also performed well: lot 143, a second block of flats, 10 units in Oadby, Leicester, raised £1.54 million.
“We are acutely aware of increasing caution in the market across many sectors,” said Gary Murphy, partner and auctioneer at Allsop. He said concern from investors and developers about the country’s political future has led to inaction.
“But despite this,” he continued, “there’s a clear willingness to get on with business but at the right price. Getting the reserves right has never been more important.”