Auction Estates secures £12m of property deals in the first Quarter of 2023, boosted by a strong April auction and against the backdrop of a slowing economy and rising inflation.
Our 27 th April auction, held last Thursday, saw a diverse catalogue offering 62 properties from the across the UK, being the usual mix of traditional housing, commercial property, land and investment products. The large catalogue on offer attracted a high number of people to the Racecourse venue and a busy afternoon of trading with over £4m raised in just over 2 hours.
Notably, and with properties being offered all over the country, there was a higher than average number of remote bidders set up on both the telephone, on-line and via proxy bidding which added to the energy of the room as investors from all four corners of the country fought to secure their purchases.
The most popular sector of the day was land, be this small low value plots through to larger landholdings. This could be seen from the off with Lot 1 selling for a staggering £135,000 (Guide Price £10,000+) with scores of bidders vying to secure this 1.6 acre plot of land situated by a service station just off the A500 near Stoke on Trent. The land was offered For Sale on behalf of the Co-op who had seven parcels of land in the auction, all of which attracted high level of interest and were sold well over expectation, much to the Client’s delight.
Larger land holdings included a 12 acre parcel of land to the east of Grantham which was guided at £55,000+ and which sold after a lengthy bidding war for £105,000 to a regional investor as a long term strategic development opportunity.
Traditional housing saw mixed results but it became obvious that most of the bidding was being placed on empty houses in need of full renovation, either to flip or to rent out as long term investments. Some of those properties in particularly poor condition had created such a frenzy that some clients chose to sell prior to auction as prices were so strong. A prime example of this was Lot 1, a four bedroom house in Netherfield which required a comprehensive program of works. It sold in a bidding war pre-auction and a strong price was secured for our overseas client.
A similar project on William Road in West Bridgford, guided at £295,000 and requiring full refurbishment was knocked down at an impressive £350,000 as the last lot of the day. Previously comprising 3 flats, it is believed the property has been purchased by a building company to convert to a spacious single family dwelling in this sought after leafy suburb of West Bridgford near Trent Bridge Cricket Ground.
Also in demand was a small two bedroom cottage renovation project in the sought after village of Laughton en la Morthen near Rotherham, offered at a Guide of £99,000+ and which sold after a fierce bidding war for £174,000. The cottage sits on a large plot with views of rolling open countryside to the rear. Buyers were looking to secure planning permission to extend the property at the rear to create a larger family home in the small village where properties rarely come up for sale.
It was therefore business as usual and nice to see the attendance and results have recovered to pre-pandemic levels. There is more caution from bidders as high energy prices and the rising cost of living are slowing growth and reflecting in the type of properties buyers are comfortable on bidding. Monetary policy has started to tighten as inflation increased sharply over the first few months of the year and has remained persistent which is testament to us having raised over £12m in sales in the first quarter of 2023.
It is clear that sellers are struggling to secure completions via the traditional Private Treaty method which is proving slow and with a high abortive rate. Both Buyers and Sellers remain attracted to the auctions with immediate purchases on the day of auction and quick completions (typically 28 days after). This allows in particular those renovating properties to have the peace of mind that they can buy their work in, order their materials in advance knowing that they will have a set of keys in 28 days and can start their projects on time and on budget. As one Buyer said, they don’t mind paying stronger prices for certainty and this has reflected in the sales we’ve seen throughout our April catalogue.
Entries are now being invited for our 22 nd June auction which will take place at the Nottingham Racecourse.
