On the day that PWC predicted that house prices ‘won’t recover until 2020’ and the RICS declared that the UK property market remained in ‘stalemate’, Allsop restored confidence by raising £47m from 82% of lots offered at its 14th July Residential Auction. This success brings the firm’s receipts from property auction sales in just two weeks to over £119m. The total includes UK Commercial sales of £57.3m and Irish property disposals of €16.2m.
Buyer demand at the 14th July sale was extremely strong as a consistently packed room saw seasoned investors and first time buyers competing for lots. In all, 236 properties were successfully sold.
Gary Murphy, partner and auctioneer, commented:
“Recent market commentary is at odds with our experience in the auction room. Buyers were competing hard and some were complaining that prices were too high.”
According to the Estates Gazette Auctioneers’ League Table (9th July), Allsop Residential remains the number one auction house in its field by sales total, success rate and market share (11.1%).
“This major sale concludes a very successful half year for the department. Our UK Residential sales total now stands at over £177m (excluding Ireland) and entrenches our position as the leading auctioneer in the country,”
One of the most popular deals of the day was a penthouse apartment overlooking the Olympic Stadium. The family who made the winning bid has had a recent flurry of success at Allsop auctions having successfully bought a penthouse in Dublin on 7th July. A bid of £435,000 secured a three bedroom apartment with unrivalled views of the Olympic Stadium. They will be new landlords to the BBC who will use the apartment as their anchor studio during the games.
The morning session featured a broad selection of regulated tenancy investments, comprising individual houses and flats, 17 on behalf of a quoted vendor. Yields established under the hammer averaged 4% (national average for H1 2011 4.26%). Buyers included private investors, corporate specialists and tenants.
The sale took almost ten hours to complete and finished with a ground rent session of 49 lots, many offering low income but valuable reversions.
“The ground rent market is pretty resilient” said Murphy. “Specialist investors were out in force but are evidently disciplined when in comes to setting limits on bidding for this type of stock.”
At a glance July 2011 Sale
Regional Analysis (all lots)
|Regions||Lots Offered||Lots Sold||Total Raised||% Success||Av. Lot Sold|
|Midlands & E. Anglia||46||40||£2,631,000||86.96||£65,775|
|Yorkshire & The Humber||15||13||£1,319,000||86.67||£103,000|
|Property Type||Lots Offered||Lots Sold||% Success||Yield||Av. Lot Size|
|Ground Rents (80 yrs+)||9||8||89||5.74||£23,000|
|Sites with PP||4||3||75||–||£287,500|
|Sites without PP||6||6||100||–||£90,833|
NB: Multi lot sales are not included
Vacant Units (Individual Houses and Flats)
|Property Type||Lots Offered||Lots Sold||% Success||Av. Lot Size|
|Midlands & E.Anglia||11||8||72.7||£109,500|
|Yorkshire & The Humber||7||6||85.7||£77,500|
Lot 15 – 19 Buckingham Road, Canons Park, Harrow, Middlesex HA8 6LY
BY ORDER OF THE LONDON BOROUGH OF HARROW
A freehold building situated on a site extending to approximately 0.125 Hectares (0.31 Acres) currently occupied by a two storey office building and car park for eighteen cars. Potential for change of use to community or educational use D1 subject to all necessary consents being obtained.
Guide Price: £700,000+
Lot 81 – 45 Holland Road, West Kensington, London W14 8HL
BY ORDER OF THE MORTGAGEES NOT IN POSSESSION
A freehold unbroken building arranged as seven self-contained flats. Each flat subject to an Assured Shorthold Tenancy. Less than one mile from Kensington High Street. Total current rent reserved £104,880 per annum (equivalent).
Guide Price: £1.65m – £1.75m
Lot 151 – 73-95 (odd) Bolton Road, Maidenbower, Crawley, West Sussex RH10 7LS
BY ORDER OF A HOUSING ASSOCIATION
Two freehold purpose built blocks. Arranged to provide 12 self-contained flats.
Guide Price: £900,000 – £1m
Lot 216 – Barns at Manor Farm, Pitchcot, Aylesbury, Buckinghamshire HP22 4HT
ON THE INSTRUCTIONS OF JOINT FIXED CHARGED RECEIVERS
Freehold farm land extending to approximately 43.6 hectares (107.8 acres), part occupied by three part built barn conversion buildings to be offered collectively as one lot.
Guide Price: £1.3m – £1.5m
Lot 26 – Unit 70 Ironworks, 58 Dace Road, Bow, London E3 2NX
BY ORDER OF BDO LLP ADMINISTRATORS
Modern leashold purpose built live/work unit. Four units subject to Assured Shorthold Tenancies, one unit subject to an Underlease in favour of the BBC for 2012 Olympic Games broadcasting purposes. One unit vacant. To be offered individually. Total current reserved £95,520 per annum increasing to £181,520 per annum (equivalent) from 1st October 2011 from five units with Vacant Possession of one unit.
Guide Price: £400,000+
Notes to editor
Allsop is an independent property consultancy with a market-leading reputation for high quality service, integrity and innovation. We are also well known as the UK’s largest and most successful auction house. Our success is built on over 100 years’ experience in commercial and residential property consultancy and sales.
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