Allsop raise £46.5m at May residential property auction

Allsop raised £46.5m from the sale of 135 lots in its May residential auction, representing a success rate of 80%.

Related topics:  Auctions,  Finance,  Investment,  Allsop
Property | Reporter
18th May 2023
Auction 822
"There remains a strong market for a range of asset types, subject to pricing being correct, and the auction provides compelling proof of that"

The first in-person auction Allsop has held for over three years as a result of the pandemic, saw bidders compete in-person, online and via telephone for the lots that went under the hammer.

With an 80% success rate, it proved to be one of Allsop’s most successful residential property sales on the day of the auction itself in recent years.

Properties on offer at the auction included residential and mixed-use assets across the country, including both investment and development opportunities such as two freehold buildings in Leicester used for student accommodation, a freehold building in Hampstead, north London, and a site with development potential in Peterborough, that sold for five times the guide price.

Auction highlights included Lot 19: Cricklewood, London. A freehold mid-terrace HMO building internally arranged as seven letting rooms fully let producing £68,880 p.a., which sold for £1,075,000, reflecting a gross yield of 6.4%, Lots 46 & 47: Leicester. Two freehold buildings providing a total of 61 student letting rooms producing a total of £317,000 p.a., which sold as two separate lots for £1.5 million each, and Lot 33: Hampstead, London. A freehold double-fronted building comprising two shops and two maisonettes. Fully let and producing £61,500 p.a, it sold for £1.23 million, reflecting a gross yield of 5%.

Richard Adamson, partner and auctioneer at Allsop, said: “Held on the same day that the Bank of England increased its interest rate yet again, the success rate at our first in-person auction for three years is a testament both to the attractiveness of auctions as a means for investors to deploy cash and to the appeal of our multi-channel offering for residential property sellers to maximise value in a timely fashion.

"There remains a strong market for a range of asset types, subject to pricing being correct, and the auction provides compelling proof of that.

“It has been an absolute joy to return to the ballroom – and, based on the success of the day itself, clearly our vendors and buyers feel the same. We’ll continue to adapt, innovate and tweak our platform, including holding some online-only auctions when it makes sense to do so, with a sharp focus on securing the greatest outcomes for our clients.”

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