predictions


Clouds and silver linings Network


Auctions predict a successful 2011 in the auction house. The number of lots offered and amount raised


at auctions across the UK showed a marked increase in September over the same month last year: 15 per cent and 5.4 per cent respectively (EIG group). Investors are seizing the opportunities – especially with private treaty sales in the doldrums. Estate agents are reporting transaction rates dropping by as much as 45 per cent over the same period last year, whilst auction transactions only dipped by 25-30 per cent. “Prospects for the future are


positive – especially as funding for investors has a greater degree of robustness in a perceived tightening market,” said Toby Limbrick, Director of Network Auctions.


“The Government’s spending


review will affect the property market and this is where investors could have even more opportunities in the future. “The proposed cuts in the public sector will encourage local and national government to sell off redundant properties in order to divert expenditure to other key areas – including refurbishing existing housing stock and even building new affordable homes.” Another issue in 2011 is the


likelihood that up to 100,000 people from local government are likely to lose their jobs. This, says Toby, will also increase the number of repossessions available and many of these will find their way to auction. Equally, the reluctance of banks to loosen private lending constraints will also add to the number of repossessions. House prices are continuing to


fall and if a house move becomes imperative then auction will become the favoured route as


speed may be of the essence. Equally, if affordability becomes the name of the game, we may also see more private buyers attending auctions in order to buy at the lower end and refurbish themselves. Investors – especially in the buy- to-let sector – will see an increased demand for rental property and opportunities to buy suitable properties to add to their portfolios will become a major driver in 2011. It looks like a difficult year but


also a year of opportunity, says Toby, “We expect that auctions in 2011 will remain buoyant and are likely to be viewed by vendors increasingly more as a prime solution to their personal or corporate circumstances. The range of properties offered is likely to become more varied – both residential and commercial – and the opportunities for investors will favour those who have a more creative and entrepreneurial approach to buying property.”


resULts


Hammer home higher values


Dedman Gray report that its latest auction conclusively proved that auction is the key to achieving the best possible price. Several properties sold for considerably higher sums than their reserve, including a three bed bungalow in Benfleet, guided at £180,000 which sold for £252,000 – a 38 per cent increase. And it’s not just houses. The


freehold on four stable blocks and a garage in Westcliff-on- Sea had a guide of £50,000, but sold for £61,000; 20 per cent over the guide. Dedman Gray Auction’s MD


Mike Gray says, “People often think at auction you don’t achieve high prices – but that simply is not the case. If two or three people in the auction room are interested in the same property, they can create an amazing outcome.”


AUCTION: the big growth opportunity for estate agents


AUCTION HOUSE can help you add it to your range of services


• Auction House is the leading national network of Regional Auctioneers.


• We already have over 20 auction rooms and want to increase this to 50 in total.


• We have territory licences available in many parts of the country and would like to hear from local and regional estate agents interested in exploring the opportunity.


• It has already proved highly successful.


• Auction House is now the market leading auctions brand in Cumbria, Yorkshire, Lincolnshire and Norfolk.


• Call us soon to take full advantage of this big growth opportunity.


T: 0845 873 1366 E: enquiries@auctionhouse.uk.net www.auctionhouse.uk.net PROPERTYdrum DECEMBER 2010 61


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