David Sandeman at EIG reports a very positive set of auction results, which show a 21 per cent rise in lots offered to 3,200 lots (up from 2,640 in May 2015), and a 17 per cent rise in lots sold to 2,374 (up from 2,019 in May 2015). Furthermore, the total raised at UK property auctions increased by over £100m to £524.6m, the largest amount raised in the month of May since 2007.

These results are particularly pleasing as they came against a backdrop of economic and political uncertainty caused by the impending EU referendum, and predictions that the recent changes to stamp duty would cast gloom over the market, but the gains shown below in the residential market certainly buck the trend and dispel any notion of a declining market.

“Whilst the recent stamp duty increases may be unwelcome, as long as the sums still add up, buyers are there to do battle.”

Last month the residential market recorded increases of 24 per cent and 19 per cent for lots offered and lots sold respectively, and a staggering £63m increase in the amount raised (up 25.7 per cent). Further double-digit gains are evident in the rolling quarterly figures, with almost £100m extra revenue gained in the last three months compared with the same period last year – up 14 per cent from £704m to £802.7m.

Allsop Residential reports £63m Sale

2000 bidders attended the Allsop Residential Auction on 26th May at London’s Cumberland Hotel, as auctioneers worked their way through over 250 lots raising £63m. Competition was fierce, particularly for opportunities in London and the South East. Those who found prices the capital a little too steamy looked further afield and pushed prices for regional stock.

Auctioneer, Gary Murphy said, “This was an exceptional day. We were expecting the sale to be strong. But the depth of demand and furious competition for many lots actually took us by surprise. It’s clear that London remains top of many investors’ lists. And whilst recent stamp duty increases may be unwelcome, these are simply an additional cost, at the end of the day.

As long as the sums still work, buyers are there to do battle.”

“Housing is in short supply and would be first time buyers are finding it so difficult to put a foot on the ladder. With renting the only option, buy to let is increasingly attractive to investors. Buyers I have spoken to have not been fazed by the Chancellor’s attempts to cool the market with tax changes. The result is rising capital values and this has fuelled demand for development opportunities. The sweet spot seems to be individual homes up to £800,000 in the South East.”