Auction House witnesses its best ever April results

Auction House has announced its best ever April results, representing the sixth record month in a row.

The property auctioneer – operating as Loveitts in Coventry and Warwickshire – sold 353 lots in April from 447 lots offered, achieving a success rate of 80% and raising nearly £33 million in the process (£32,856,249).

Sally Smith, director and auctioneer at Loveitts, commented: “This is a phenomenal achievement in a market that is both challenging and hesitant.”

“Collectively, we refuse to be negatively affected by Brexit disruption and the gloomy reports from commentators. Our results prove that there are ample sellers and sufficient buyers for us to deliver an impressive number of sales.”

Auction House’s cumulative results from the beginning of the year are also impressive, with the number of lots sold up 9% compared to 2018. The group sold 1,125 lots from 1,471 lots offered – a success rate of 76.5% – and raised a total of £122,126,325.

According to Smith, despite a national decline, regional auction markets are still buoyant. With Auction House selling local properties to local and regional buyers through nearby auction rooms, the micro-markets are governed by regional factors as opposed to national sentiment.

“Our regional auction rooms are delivering high success rates in most parts of the country, volume sales are still strong, and we are reporting growth at a time when estate agent activity has slowed,” she continued.

“Auctions provide that speedy sale solution being sought by an increasing number of sellers. More and more landlords are now selling their buy-to-let properties as new, more aggressive tax policies erode rental profitability. Interestingly, this stock is selling well through our regional salesrooms – especially when improvement work is required or when yields are strong.”

Smith said the auctioneer is advising many more investment landlords on how to ‘slim their portfolios’ and ‘limit their exposure’ to higher taxations levels.

“My advice to those with buy-to-lets is to evaluate your position and don’t serve notice to your tenants until you have decided on a disposal route,” she went on.

“It may be better for you to sell the property tenanted rather than vacant – that way, you will continue to receive rent to help service your mortgage right through to legal completion,” she concluded.