Network Auctions latest auction indicates changing market conditions

Warren Lewis
27th June 2014

Network Auctions’ July auction got off to a flying start with six of the first seven lots going under the hammer at exceptional prices and a clear appetite for good investments, London property and development land being shown.

Toby Limbrick, Managing Director of Network Auctions said: “Our latest auction clearly demonstrated certain areas of real strength in the market but also the first signs of change in market sentiment.”

Development lots, including two parcels of land being offered on behalf of Stevenage Borough Council generated considerable interest and furious bidding. These two lots eventually sold at £106,000 and £183,000 respectively, some 34% and 26% over the guide price.

Demonstrating the strength of the London market, a lot in London SE17 sold at £225,000, some 14% over guide.

A lot comprising of freehold ground rents in Leighton Buzzard saw extremely competitive bidding and when the hammer fell at £44,500, a price 48% above guide had been achieved.  
 Several other more standard house purchase or investment lots attracted interest but either fell just short or just beat reserve levels, a clear sign that buyer sentiment is hardening and, whilst people are still prepared to purchase, they are perhaps being more cautious about pushing the envelope quite as far as in recent months.

A number of lots originally intended to be sold in the London saleroom were not ready to do so but are now due to appear at forthcoming auctions including Network Auctions’ joint auction with Pennycuick Collins in Birmingham on July 16th.

Network Auctions’ next London auction is on 10th September.

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