Auction roundup – £40m raised and the success of M...

This week’s mini roundup involves successful results for Allsop, which raised £40 million worth of sales in its May auction and anticipates a thriving commercial sale. Meanwhile, agents continue to reap the benefits of Modern Method of Auction through iamsold.

Allsop: £40m raised in May resi sale and commercial auction thrives

Allsop’s residential auction on May 12 sold 91 lots, generating £40 million worth of sales.

A mix of investments sparked intense competition that saw hundreds of bidders compete for individual lots.

Buyers placed 3,722 bids on the day of the auction, with 958 individuals having registered to participate in the sale. On offer at auction was a mix of AST investments, buildings with repurposing potential, and ‘fixer-upper’ properties for owner-occupiers or investors.

The highest value lot sold on the day was a freehold detached apartment building in Gravesend, Kent, containing 12 self-contained flats. With a total current rent reserved of more than £120,000 a year, it sold in excess of its guide price for £2.3 million.

Other auction highlights include:

Lot 45: a freehold former health centre extending to 6,261 sq ft featuring a planning application submitted by a third party for the demolition of the existing building and erection of seven dwellings with associated landscape and parking in Leeds. It sold for £351,000 from a guide price of £150,000
Lot 8: a long leasehold self-contained flat with three-bedroom accommodation located in the affluent neighbourhood of South Kensington, London. It is subject to an assured shorthold tenancy of £78,000 per annum, was guided at £1.3 million and ultimately sold for £2.2 million
Lot 1: a freehold detached three-bedroom house in Epsom, Surrey, was another popular lot, receiving 541 bids and selling for £891,000 from a guide price of £350,000

Richard Adamson, partner and auctioneer at Allsop, says: “With a strong Q1 behind us and only one more residential auction ahead of the half-year mark, it’s abundantly clear that the auction market is proving robust amid challenging economic circumstances.”

“We’re seeing time after time that despite the uncertainty elsewhere in the market, investors see significant potential returns in residential property, particularly when priced well. “

He adds: “Our team is overseeing competitive bidding on lots across the country, and it’s been especially noteworthy to see strong interest for London investments as investors return to the capital and see auctions as one of the best ways to deploy their cash.”

Allsop’s next residential auction will be held online on June 23 2022.

Meanwhile, its commercial auction is soon underway on May 25, with a catalogue of 140 lots and an average guide price of more than £850,000.

Eager investors will be drawn to the wide range of potential investments across the country, 39 of which are guided at £1 million or more. Properties on offer range from retail and industrial assets to mixed medical and residential investments.

Key highlights include:

Lot 27: a grade II-listed freehold medical and residential investment situated in Marylebone, London, comprising medical accommodation on lower ground to second floor with large maisonette and roof terrace on upper floors, guided at £10.5 million-plus
Lot 33: a freehold mixed-use investment and development opportunity located in Hampshire, consisting of three retail units, ten newly completed flats and a large car park on a site of approximately 0.97 acres, guided at £3 million-plus
Lot 18: a freehold parade comprising shops, a nightclub and a former gym located in Epsom, Surrey, providing total accommodation of approximately 26,655 sq ft, guided at £2 million-plus

George Walker, partner and auctioneer at Allsop, comments: “Private investors have had a busy first quarter, which has seen us sell £112 million worth of property so far in 2022, as they pin their faith in our high yielding sector.”

“The latest catalogue has a higher average lot size than usual, with 39 lots guided at over £1 million, as the auction team continues to work alongside other specialist teams within Allsop on the sale of a wide range of mixed-use, retail, industrial and other assets.”

Record-breaking auction sales are still a boon for agents

iamsold, the auction service of iamproperty, has reported record-breaking sales already up by 14% so far this year.

The auctioneer has supported its Partner Agents to sell 1,978 properties via the Modern Method of Auction (MMoA), with more noting the method is helping them to win new instructions in a competitive market.

The busy period of sales raised over £349 million in capital value for vendors. Properties sold have increased by 14% and money raised by 32%, both compared with the same period last year (Jan-Apr 21 vs 22).

Fees paid to Partner Agents have also gone up by 26%. This strong start to agents’ auction sales comes as iamproperty continues to raise awareness of online auction among consumers as an effective method of sale, with speed and security at the heart.

Recent iamproperty research shows that 67% of its Partner Agents agree auction awareness has increased, with 76% expecting to work with iamsold even more this year as a result.

Jamie Cooke, iamsold’s managing director at iamsold, says agents need to do everything they can to stand out to win new instructions – and auctions are helping to facilitate this.

“Our Partner Agents are telling us that being able to offer vendors a choice of their method of sale is helping them to hit their targets, as more vendors are interested in the benefits of auction,” he says.

“The market remained fast-paced in the first quarter of the year and vendors increasingly chose online auction to make their move faster and more secure.”

“After a transformative year for auction in 2021, it’s great to see this buzz continue. We’re seeing no signs of the auction market slowing down – the total opposite in fact – as more people see it as a fast, secure and transparent way to sell and buy property.”