Auction roundup – are unconditional auctions the fu...

In this return to our auction roundup, Property Investor Today explores whether unconditional auctions are the future and a Kensington property which is one of the largest to be sold at auction in the UK.

Unconditional auctions are the future, claims Auction House

One of the UK’s leading auction firms has reaffirmed its commitment to the traditional, unconditional method of sale following recently announced changes in the landscape of the auction market in the UK.

Jeremy Prior, Auction House’s managing director, said: “The fact is, unconditional auctions are in our DNA: it’s where we’ve always put our focus and it’s where we always will. Without doubt, they provide the best way of selling auction property in terms of both speed, and security of sale. It’s why buyers and sellers prefer them, and why we sell more properties via the unconditional method than anyone else in the UK.”

He added: “It also explains why we have just completed our most successful August in the 15-year history of the group, selling a record number of lots and raising more money on behalf of our clients than ever before.”

What are the differences between an unconditional and conditional auction?

With an unconditional auction, contracts are exchanged on the fall of the gavel, with completion following between 14-28 days later.

By contrast, in a conditional auction, which is more popularly known as a Modern Method of Auction (MMoA), the buyer only secures a period of exclusivity before contracts are exchanged, with completion then following afterwards.

Prior said: “As well as the unreasonably high charges made to the buyer at the seller’s expense, the conditional method is slower, more cumbersome, and much more prone to the problems that befall private treaty sales – indeed, the sort of difficulties many sellers deliberately choose auction to avoid!”

“So, whether the sales are in-room, livestream or online, our commitment to unconditional auctions remains undiminished, and we can confidently predict that in 2022 we will exceed last year’s sales figure of £605m.

Prior concluded: “Therefore, our partner agents - both old and new - can rest assured that our focus will remain unchanged, as we continue to offer a fair, transparent and cost-effective service, whilst always working on behalf of our vendor clients to achieve the best possible price for each and every property.”

Strettons to sell Kensington residential investment at next auction

In other auction news, one of the largest residential investment properties to ever be offered at auction is due to go under the hammer at Strettons next national property auction, which takes place on Tuesday September 13.

A period property including 24 self-contained flats, Lot 6, 119/121 Warwick Road, SW5 is set across six floors within two large, adjoining buildings. With a guide price of £9.5 million-plus, the property currently produces £420,000 per annum in rental income.

Andrew Brown, Strettons auction director, said of the property: “We are looking forward to making a piece of UK auction history with the Warwick Road property. We successfully sold a large apartment block in Bethnal Green, the largest property to ever be sold at auction in E2 for £7.5 million at our July sale and are aiming for a repeat performance here. The property will attract investors looking to add a healthy income producing property to their portfolios and I am expecting its yield and location to have wide appeal.”

Warwick Road is comfortably the highest priced property in Strettons September sale, which also features 42 varied properties from across the UK with prices ranging from £9.5 million for the Kensington residential investment, to £5,000 for a leasehold vacant parking space in South Woodford. You can view the full catalogue here.

Other notable properties included in September's auction catalogue include:

Lot 1: A freehold vacant property comprising two flats on Grove Green Road, Leytonstone, guided at £550,000-plus.
Lot 2: A freehold commercial unit and upper part on Morning Lane, Hackney with a guide price of £275,000-plus.
Lot 3: A freehold investment comprising a shop and 5 self-contained flats in Kentish Town. Currently producing £130,240 per annum, the property has a guide price of £2,000,000-plus.
Lot 7: A vacant freehold retail shop in Chingford. Guided at £305,000-plus. The property has undeveloped upper parts in need of a full refurbishment.
Lot 14: A freehold vacant garage site with planning for four houses on Wolsey Avenue, Walthamstow, guided at £1,200,000 plus.
Lot 24: A freehold vacant holiday home in Point Clear Bay, St. Osyth, Essex, with planning permission to construct a new larger three/four bedroom modern residence. The property has a guide price of £200,000-plus.

“Throughout 2022, we have seen healthy demand from investors for properties that are well priced, and where value can be added. We have a range of properties such as this in our September catalogue and I am confident that these will appeal to a range of investors and property developers," Brown adds.

“From the seller’s perspective, we are having an increased number of conversations with people who are looking to sell their property and are considering doing so via auction. The changing market conditions and uncertainty means sellers want the speed and certainty of sale that auctions provide.”

Strettons’ September sale takes place on Tuesday 13 September at 12 noon. Further information and registration is available here.