Auctioneers have lots going for them
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Many of the property auction houses continue to report healthy results.
Perhaps none is more bullish than Allsop Residential which delivered its highest total since February 2009 at its May auction.
Allsop sold 85 per cent of nearly 400 lots at a marathon two-day residential sale to raise £58 million. The sale comprised a broad mix of properties across the UK.
A higher proportion of lots than at previous sales were in Scotland. Some 33 lots were offered north of the border for administrators and formed part of a £6 million disposal of 47 lots. They drew strong competition from local buyers, some of whom attended although many bid remotely. Lots in Aberdeen, Glasgow and Edinburgh were significantly popular.
In total, 114 lots were offered on behalf of Allsop's in-house receivership team; 216 distressed lots went under the hammer,
making up 50 per cent of the auction overall. Seven housing associations were represented, offering 28 lots between them.
Commenting on the result, auctioneer, Gary Murphy says: "This has been a very exciting sale for us. We were particularly encouraged by the strong attendance on each of the two days and the determination of bidders to compete."
Although the impending capital gains tax rises had not been confirmed formally prior to Allsop's deadline for its May sales, the firm reports a surge in potential instructions since the announcement for its subsequent sale. "Increased CGT liability is an important driver now for many investors contemplating sales. Our July 13 and 15 sales are open for those hoping to make more tax-efficient disposals before thresholds are raised," says Mr Murphy.
Assured shorthold tenancies averaged a yield of 8.23 per cent, assured tenancies were 3.73 per cent, regulated tenancies were 3.26 per cent and ground rents of more than 80 years were 5.61 per cent. Notable lots of the sale included 39 Amhurst Park, Stamford Hill, N16, a freehold house in multiple occupation with 14 rooms and all let on unknown terms. It sold for receivers for £700,000 to local buyers against a guide price of £600,000 plus.