"These results strengthen the case for regional auctions at a time when the residential market is struggling."
Auction House sales figures in May marked the fifth month in a row of improved fortunes for the group. Its five month results from January are currently 8.8% up on 2015, with 1,250 sold at a success rate of 76% and £165m raised.
Roger Lake, Auction House Founding Director said: “These results strengthen the case for regional auctions at a time when the residential market is struggling. The combined effect of Stamp Duty changes and reducing tax relief on Buy-to-Let mortgages is coupled with increasing uncertainty ahead of the referendum on Britain’s membership of the EU. Nevertheless, Auction House had another very successful sales month with 221 lots sold – a 7% increase compared to last year.”
Roger Lake says that recent auctions included examples which illustrate the importance and value of local stock being sold to local buyers through nearby auction rooms.
He explains: “Our most recent sale in Cumbria included 13 properties which had been badly damaged in the devastating Carlisle floods six months ago. Twelve of them sold, either on or around their guide price, to local investors and homebuyers. Similarly, in our latest Birmingham auction, 11 of the 29 lots were being sold as a regional portfolio by a local vendor. All 11 sold very quickly for over £1m, beating their combined reserve of £799,000 by more than £200,000.
Both of these examples are cases where urgency and opportunity favoured a local auction as the preferred method of sale. Best prices were achieved due to the local knowledge of the auctioneers and extensive database of buyers on their registers, together with effective promotion across the area.
In the coming months, local portfolios and individual lots in other parts of the country will come to market as investor landlords adjust their future plans, and unpredictable circumstances bring about the sale of unmortgageable properties. Regional auction rooms are without doubt best placed to deliver quality results on such stock.”