Allsop, the UK’s largest auction house, has raised a total of £351m from the four commercial auctions held so far in 2017, as demand from investors prevailed during an uncertain political climate.
According to its Commercial Auction Summer Review 2017 released today, Allsop sold 556 lots with an average success rate of 85%.
Despite a challenging political backdrop which saw the triggering of Article 50 and June’s General Election, the auction room remained resilient, culminating in a strong July sale that raised £88m – comfortably above the £70m raised in the July 2016 auction.
The first half of the year also saw a significant increase in the number of high-value lots offered; 100 lots went under the hammer for a guide price of £1m+, the largest of which – an office building in St. Albans sold at the July auction for £7.1m.
Confidence in the High Street also remained strong; of the 100 lots sold for £1m+ in H1, 76% were retail investments.
As the market continued to remain stable, emboldened buyers ventured beyond their home region, with 63% purchasing elsewhere in the UK, up by 5% since 2016.
Lots in London and the South East remained a strong focus, with 35% of the total lots offered located in the region, 62% of which were offered at £1m+.
Cash is still king with the majority of buyers (80%) relying on cash reserves to purchase their property, the highest recorded figure since the start of 2016.
Patrick Kerr, Partner, Commercial Auctions, Allsop said: “Despite the snap General Election, Brexit negotiations and all-time low interest rates, the auction room has once again taken a keep calm and carry on attitude.
“Real estate continues to offer a consistently strong yield, and coupled with signs of rental stability, the demand for well-let, well-located investments is likely to continue throughout 2017.”
A copy of Allsop’s Commercial Auction Summer Review 2017 can be viewed here.