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Auction news – May was strong and stable…

David Sandeman the Essential Information Group reports on the latest auction results.

The Negotiator
David Sandeman

David Sandeman

“Whilst the UK battles with turbulence in politics, security and safety, I am pleased to report on a set of auction results that are largely strong and stable! (apologies to the PM).

Remarkably only one lot fewer was offered in May, when compared with May 2016, but lots sold increased two per cent to 2,422 lots and effected a healthy 75.7 per cent sale rate,up two per cent.

The residential sector performed amazingly well, with lots offered up almost 5 per cent to 2,560 lots and lots sold up almost 10 per cent to 1,945 lots. The amount realised from residential sales totalled £338 million, up £27m (8.9 per cent) from the £311m raised in May 2016.

The rolling quarterly figures, which had shown double-digit falls in last month’s newsletter, now show only marginal falls in lots offered and sold and positive growth in both the sale rate – up 1.6 per cent to 75 per cent, and the amount raised – up 0.6 per cent to £808m.

Auction news

Newlyweds auction home imageScenes of joy lifted the hearts of everyone at a property auction in the Cotswolds, when a newly married couple snapped up their dream home.

Charanya Crome threw her arms around her husband Andy as the hammer fell on Cottars Barn in Lechlade, described as “A charming converted Cotswold stone barn with sizeable outbuilding and pretty gardens extending to 0.22 acres.” at £465,000 – a shade over the £450,000 guide price.

Although private buyers are welcomed at Moore Allen & Innocent’s property auctions, the sales tend to be the preserve of developers and speculators looking for land to build on or a property to renovate and resell, for whom every purchase is strictly a business transaction.

But Cottars Barn was a rare auction lot – a delightful property ready for habitation.

Smiles all round as young couple win their dream home, a converted barn in the Cotswolds at auction.

The show of affection and excitement from the buyers raised a smile from auctioneer Roy Bowyer, and even the vendors, Alan and Jacky Russell, gave them the thumbs up.

Windmill Cottage sails through auction

Windmill Cottage auction imagePolling for the general election on the same day appeared to have no effect on SDL Auctions Graham Penny’s Derby auction.

Lots sold on the day and prior to the event totaled more than £4.8m with strong interest shown in the 66 lots offered at Pride Park Stadium.

One of the best results was for the final lot – Windmill Cottage 185 Swarkstone Road in Chellaston, Derby, which sold for £180,000 from a guide price of £85,000.

Auctioneer and Managing Director Andrew Parker said, “Having the general election on the same day clearly didn’t deter people from coming and buying, and you could say they voted with their feet – or their paddles.

“We were pleased to see such a busy auction room and were delighted to welcome the Homes under the Hammer TV programme to another of our regular auctions.”

Lively buyers at Auction House London sale
Roger Lake image

Roger Lake

Buyers are still turning out in force for Auction House London with one listed property selling at almost double its guide price, at its June sale. In Hampshire a three bedroom semi detached property, needing total modernisation, started with a guide price of £90,000, and sold for just under double that, at £178,000.

The house in Minden Way, Winchester needed total modernisation. In Wanstead, London, one property with three self contained flats generating an income of £26,500 a year in rental, created a lot of excitement. Two of the flats were being auctioned, along with the ground rent of the third. Bidding started at a relatively modest £375,000 – with the hammer coming down at £662,000.

At the auction at London Marriott Hotel, 61 per cent of the 106 lots listed, sold, raising almost £10m (£9,870,005).

Auctioneer and Managing Director, Andrew Binstock said, “There was a good turnout for this auction, and despite political uncertainty, we still have plenty of excellent results on many of the lots.”

Robust results across Auction House sales

Auction House property imageAuction House reported robust figures for May 2017, selling almost a quarter more lots (23 per cent) than during the same period last year – 274 lots in the month, compared to 223 in May 2016.

Founding Director Roger Lake said, “Despite holding the same number of auctions during the two months in question, the group has sold a significantly increased number of lots. This suggests that the appetite for selling under the hammer through our regional auction rooms hasn’t been diminished by concerns over Brexit or the snap General Election.

“Even if people made their decision to put properties into our May sales prior to the election announcement, our entries for June look likely to be nearly 100 lots ahead of last year – and these were all placed with us when the election campaign was already underway. This indicates that there’s no shortage of sellers around the country, and purchasers are still hungry to buy.”

“Many sellers are in a hurry, so they choose the auction route to market in order to get the results they want in the time scale they require.”

Symonds & Sampson sellout

Auction property, Sherbourne, Dorset, auction newsSymonds & Sampson’s May property auction in Sherborne Dorset was a resounding success with all of the lots in Dorset and Somerset sold – to buyers from London, Yorkshire, and Staffordshire, as well as to local buyers. Some interested bidders flew in from France and Monaco especially for the sale but were unsuccessful.

Auctioneer Mark Lewis said, “We pride ourselves on a varied and eclectic catalogue and this was certainly the case with this auction.

“Buyers are looking for long term ‘slow burning’ projects where there is potential to get a change of use on a property and this was seen at Ilminster Somerset. The 5.5 acres of land had been identified in the housing and economic land availability assessment report published by South Somerset District council. The guide of £75,000 encouraged interest and the sale price was £160,000.

“Farm buildings at Rimpton near Sherborne were possibly ideal for a change of use under permitted development rights but the district council was not keen. The buyer who paid £100,000, however bought for strategic reasons.

“The most interest was for redundant farm buildings at Plumber just outside Sturminster Newton. The courtyard development has been in the same family for many years and presented an opportunity to convert to a dwelling, four holiday units, an exhibition hall and studios/ offices. Guided at £325,000 bidding was quick and strong with the hammer falling after 41 bids at £517,000 (59 per cent above guide) to a local family.”

Together’s new specialist buy-to-let range

Together has launched a new specialist buy-to-let product range, designed to support property investors as they grow their portfolios, including auction purchases and increased the maximum loan size to £2 million.

Marc Goldberg image

Marc Goldberg

Aimed at landlords and investors with multiple properties, as well as those looking to secure finance on Houses in Multiple Occupation (HMOs) or semi-commercial properties, the new products are tailored for complex situations, and apply across both first and second charge loans. The new loan size of £2 million is available for first charge applications, on both the standard and specialist buy-to- let products, and spans most property types. The maximum loan for second charge has also been increased to £500,000.

Marc Goldberg, Commercial CEO at Together said, “We see continued demand for buy-to-let funding, with an increase of 44 per cent in 2016, so we’ve developed this new product range to support property investors as they build their portfolios. As a leading buy-to- let lender, we’re committed to improving and enhancing our products in line with market needs, and our increased loan size of £2 million is reflective of the growing demand for larger loans.

Loving unloved office buildings

Parham House, West Bromwich, auction newsBlack Country commercial property agents Bond Wolfe have sold Parham House in West Bromwich for £1.45 million.

The freehold of the office and retail mixed use property was sold with outline planning permission for conversion to residential to an unnamed developer.

It was offered at Allsops’ London auction on Thursday 25th May with Bond Wolfe as joint auctioneers.

Bond Wolfe Managing Director James Mattin said, “The property was sold on behalf of London based owners to a developer will now seek to implement the 47 unit scheme that benefits from permitted development rights.”

“Interest in Parham House exceeded all expectations and this is clearly driven by the demand for unloved office buildings with permitted development rights.

“It provides an opportunity to redevelop a building no longer considered fit for purpose and will enhance that part of the High Street immensely.”

Parham House is on the High Street, West Bromwich, and extends to 0.823 acres, including 76 marked parking spaces.

August 21, 2017

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