This page contains a Flash digital edition of a book.
Graph 3
Volume of residential
vOLuME OF RESIDENTIAL AuCTION SALES AS A PERCENTAGE
OF ALL SALES RECORDED bY ThE LAND REGISTRY
auctions sales as % of all
5.0%
4.5%
Graph 3 also demonstrates this increased popularity of
auctions. Since Q1 04, the volume of residential auction
4.0%
sales expressed as a percentage of all sales recorded by 3.5%
the Land Registry increased from 1.2 per cent to 4.7 per
cent in Q4 08. This trend has begun to reverse in ’09
3.0%
with the rate of private treaty sales improving and the 2.5%
proportion of sales dropping back to 4.1 per cent.
2.0%
Graph 4
1.5%
Average AST yields in 4
t
age 1.0%
Rapid regions – annually
cen 0.5%
P
er
0.0%
Graph 4 provides a comparative analysis of
Q1 Q1 Q1 Q1 Q1 Q1
gross yields for properties subject to an Assured
2004 2005 2006 2007 2008 2009
Shorthold Tenancy achieved at auction in the
four key RAPID geographical areas since 2004.
Returns in these regions were at their most
diverse over this period in 2004, the highest
average returns being in the north of England,
Scotland and Northern Ireland at 10.08 per cent
AvERAGE AST YIELDS IN 4 RAPID REGIONS - ANNuALLY
and the lowest in the South East and Eastern 11%
region at 6.6 per cent. Yields converged in these
London
areas towards 2006 but have diverged since.
South East & Eastern
Currently, gross returns are lowest in London at
10%
Midlands, Wales & South West
7.96 per cent and highest in the Midlands, Wales
Northern England, Scotland & N Ireland
and South West at 8.97 per cent. Only in the
north, Scotland and NI have yields remained
9%
National
higher than the national average.
Graph 5 8%
Nationwide House Price
Index 1986 – 2009
7%
Graph 5 demonstrates the correction reflected in the
ield
Y
6%
Nationwide House Price Index. This shows that in Q2
09, the average sale price of a house in the UK began
age
to rise (from £149,700 to £154,000) following steady
v
er
A 5%
falls from Q3 07 (peak £184,100). It is interesting to 2004 2005 2006 2007 2008 2009
compare the first 4 quarters of this current downturn
in the market with the figures from the early 1990s.
OutlOOk
The prevalence of private investors in the
NATIONWIDE hOuSE PRICE INDEx 1986 - 2009
residential auction rooms shows renewed
confidence in the sector. Despite the limited 40.0 Average Price £200,000
availability of finance, buyers are willing to
35.0
Annual Change (%)
£175,000
invest their own cash. With average investment
30.0 £150,000
yields from assured shorthold tenancies at 8.5
per cent and rising, property is still an attractive
25.0 £125,000
alternative to cash savings. Although mortgage 20.0 £100,000
approvals are rising slowly, banks remain
15.0 £75,000
reluctant to offer lower rates and will continue
to use the opportunity presented by the current
10.0 £50,000
0.5 per cent base rate to improve their balance
(%)
5.0 £25,000
sheets by increasing cash reserves. Forced sale 0.0 £0
properties will continue to come to market.
-5.0
Change
P
rice
Next month we will look at how estate agents can
-10.0
become involved in auctioning property.
-15.0
age
David Sandeman is MD of the Essential Information Annual
-20.0
v
er
A
Group. Founded in 1990, EIG covers every auction in
Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1
the UK and has a fully searchable database.
1986 1989 1992 1995 1998 2001 2004 2007 2009
For further information email: davids@eigroup.co.uk
PROPERTYdrum OCTOBER 2009 63
Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68
Produced with Yudu - www.yudu.com