Despite some recent reports suggesting that the UK property market is plummeting, a recent auction hosted by Loveitss, an estate and letting agent operating in Coventry and Warwickshire, has proved that the the market remains buoyant.
In fact, guide prices continue to be smashed at its bi-monthly auctions – whose lots cover commercial, land and residential properties situated throughout Coventry and Warwickshire.
According to a report issued by the Financial Times in 2018, house price growth within the Midlands has overtaken London and the South, with further predictions suggesting that out-of-town investors will target the region in the forthcoming years to capitalise on the latest market cycle.
With several properties being purchased for well above their guide price and over 80% of lots being sold on the night, Loveitts’ latest auction suggests the Coventry and Warwickshire region ‘remains a profitable region for property sellers and buyers alike’.
The most successful lot sold on the night had a guide of between £80,000 and £100,000 and eventually went under the hammer for £164,500 – almost double its guide price.
A property based in Wyken Coventry also smashed its guide price. Requiring modernisation throughout, the three-bedroom home sold for £162,000 against a guide of £90,000-£100,000.
Another hot lot took the form of a 3.4-acre parcel of land situated off Shilton Lane in Coventry – beating its guide price of £100,000-£150,000 by over £80,000, selling for £232,000.
Among the properties which sold above their guide prices were a commercial property that previously produced £15,840 per annum, one of the cheapest flats in Coventry, a three-bedroom detached bungalow based in Tile Hill, Coventry and a parcel of land comprising of a layby for four vehicles in Walsgrave, Coventry.
According to Loveitts, the increase in the number of investors coming from outside the region has steadily increased over the past 12 months and could have factored in their most recent auction success.
Sally Smith, director and auctioneer at Loveitts, commented: “Auctions are fast becoming a legitimate route to market for both sellers as well as buyers which can be seen by the increase in lots over the past 12 months at the Loveitts bi-monthly auction.”
“With properties selling for as much as 64% above their guide prices, prospective sellers can be confident in the auction process as lots that generate interest will usually have their guide prices beaten on the night.”
She added: “We were delighted that despite political uncertainty affecting the property market heavily in certain regions, Coventry and Warwickshire remains a buoyant and a sought-after area for investors, sellers and prospective homeowners.”
Smith said a noticeable spike in bidders coming from all over the UK proves how sought-after the area is for out-of-town investors. And, as more people look to move to the area due to the rise in the country’s student population and its status as the UK City of Culture 2021, interest in the area will continue to rise.
Loveitts next auction will be held on Thursday 11 July at the Village Urban Resort Hotel, Canley, Coventry from 6:30pm.