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In 2016, Allsop Residential Auctions raised a total of £432 million and achieved a success rate of 78%, cementing its market leading position for 22 years running. This compares with a market average success rate of 74%.

In total 1,222 lots were sold with an average value of £353,000, compared to £308,000 in 2015. Higher value lots increased in volume with 118 sales realising in excess of £1 million, against 90 in the previous year.

Across the UK commercial and residential sectors, Allsop raised a total of £1.042 billion, a 17% increase over 2015, with an overall success rate of 82%. When combined with the firm’s Irish sales, this takes the total property sales under the hammer, in room and online, to £1.23 billion.

2016 got off to a strong and positive start with February’s auction achieving sales of £76 million, significantly higher than previous years and one of the highest achieved. Confidence in the residential market remained strong amongst bidders, despite ensuing stamp duty tax hikes and penal changes to tax relief. This confidence helped the March and May auctions to post £58 million and £69 million respectively, demonstrating investors were unperturbed.

A month after the Brexit referendum result, the July auction room remained full and active. The fluctuation of Sterling, a result of the UK’s decision to leave the EU, sparked demand from overseas investors and strengthened competition in the auction room. This is in line with recorded overseas interest in the Allsop online catalogue, which received 983,400 visits from 197 territories globally, of which 48% were new visitors.

The outcome of the Brexit vote and its uncertainty also drew attention to better quality stock among cautious investors looking for long term security of income. This contributed to London and the South East remaining popular among buyers throughout the year. Of all lots sold 44% were located within the M25 and 60% within the wider South East area (up from 56% in 2015).

On analysing supply, the proportion of distressed stock offered fell from around a quarter in 2015 to 18% in 2016. This is consistent with a healthier economic climate and a sustained low interest rate environment. Supply in the South East (including M25) was buoyant and 2016 showed a marked increase in the average lot size of single vacant units in the region, up 21% from £349,000 in 2015 to £422,000 in 2016. The rise in value and volume of stock in the area, and growing popularity among vendors using the auction room as route to market, are significant contributing factors.

In addition, over 41% of all lots were contributed by property companies, by far the most prominent vendor class, realising almost £216 million in sales – almost half the total sales revenue for the year.

Allsop Partner, Residential Auctions, Gary Murphy, commented: “Despite the political upheaval, uncertainty and cautious market place, the auction room has remained active; buoyed by an increase in interest from overseas buyers.

“Next year is likely to bring a new set of challenges. However, with sustained low interest rates and low inflation, along with an embedded mentality to invest in property or own one’s home, we are confident the auction room will remain as active as it did in 2016.”

Read the full review online reviews.allsop.co.uk


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.

For details visit www.allsop.co.uk

Contact

For further information or supply of images

Anna Jones, Residential Marketing and PR Manager at Allsop on 0207 543 6728 or anna.jones@allsop.co.uk

Charlotte Gold, Redleaf Communications on 020 7382 4729 or allsop@redleafpr.com