Auction overview – and despite rising interest rates…

Between January and March, the property auctioneer sold a record 892 properties out of 1,063 on offer, a success rate of 83.9% and a total of £137,849,799.


This represents a 6.5% increase in the number of sales compared to its previous record in the first quarter of last year, when the group sold 838 lots out of 1,042 offered (a success rate of 80.4% and a collection of £132,683,102).


Commenting on the figures, the auction house’s managing director, Jeremy Prior, said: “This is another remarkable set of figures from the auction house, particularly given the economic position the broader market that the market was facing at the time.”


“Since December we have had three consecutive hikes in the Bank of England base rate – from just 0.1% in December last year to a more substantial 0.75% now, bringing it back to pre-existing levels. covid.”


Prior says the moves were mainly in response to a spike in the UK inflation rate, which rose to 6.2% in the year to February 2022 from 5.5% the month before. .


“Many forecasters now believe that inflation could peak at a level above the 8% previously predicted,” he adds. “Normally, in such circumstances, one would expect higher interest rates to encourage people to save more because they get a higher return and to borrow less because it’s expensive – especially for those with adjustable rate mortgages, of course.”


“And yet, this year, these interest rate hikes do not appear to have affected buyer demand, which has remained strong throughout. This may be the first consecutive increase since 2004, but it is also our best first quarter and our best March ever.


Compared to pre-pandemic numbers, Auction House says this year’s successes are even stronger. In March 2019, Auction House sold 261 properties, while in March 2022 the group sold 400, an increase of more than 50% (52.3%). We also note a 14% increase in the number of lots sold in the first quarter of 2019 (781) compared to the first quarter of 2022 (892).


Prior goes on to say, “These numbers just show the amazing resilience of the auction market. Even with Russia invading Ukraine, rising interest and mortgage rates, and huge uncertainty about how we live with Covid, people are still turning to bricks and mortar .


“Even if continued inflation means we should expect to see further interest rate hikes this year – perhaps as early as the next meeting of the Bank of England’s Monetary Policy Committee on May 5. Nonetheless, we firmly believe that the market will maintain its robust position, as it did in the first three months of the year.”

Allsop releases 174 lots for May auction


Allsop has released its May residential auction catalogue, offering 174 lots of which 20 are guided above £1million.


Several lots have significant repurposing potential, including a former Debenhams in Sheffield city centre.


The new catalog offers potential buyers a wide geographical spread of investments and developments, with lots available in London, Sheffield, Kent and other high demand locations.


Opportunities include a diverse mix of homes, apartments, ground rent investments and mixed-use projects from a diverse pool of sellers.


Highlights from the residential catalog include:


  • Lot 41 – former Debenhams building in Sheffield city center with potential for redevelopment, spanning approximately 213,892 square feet, priced between £4.5-5m

  • Lot 32 – a block of 33 purpose-built freestanding apartments with landscaped communal gardens and parking, located in Tunbridge Wells, Kent, guided to over £4.25million

  • Lot 83 – a freehold building offering ten self-contained apartments and three commercial units under long lease located in Great Missenden, Buckinghamshire, guided to over £2.8million

  • Lot 76 – a former freehold office and retail building with planning permission to form a 97 bedroom student residence, located in Portsmouth, Hampshire, guided to over £2.3m


Richard Adamson, Partner and Auctioneer at Allsop, comments: “We are delighted to publish another strong catalogue, with over 170 lots on offer. Our upcoming auction should provide many value-added opportunities across the country. »


“As the market continues to strengthen, we have seen a very busy first quarter, demonstrating how strong residential real estate remains as an asset class for investors. We expect a busy few weeks before the auction, as buyers seek to show early interest in the lots.


Allsop’s next residential auction will be held virtually on May 12, and the full catalog is available here.


Leslie M. Gill