Results across London and the South East have scored turnovers ranging from 75% to 90%, as bank returns have dropped to below 1%. Success in the room is being achieved despite a reduction in the number of repossessions on offer.
Kevin Gilbert, auctioneer at Clive Emson, said demand for vacant properties and land at its trio of sales in Kent, Sussex and Hampshire on 19, 20 and 23 February was strong, raising £12.5m from a 75% success rate. Ninety-six out of 134 lots sold at prices often in excess of guides, including a three-bedroom cottage in Wittesham, Kent, that achieved £242,000 off a £150,000 guide.
“A herd instinct swept through the room,” said Gilbert. “It is private-capital driven but will it last? I suspect it may dry up by the middle of the year.”
Auctioneers said the latest results were welcome and an unexpected departure from the 61-67% success rates seen in the last quarter of 2008, following June’s 53% low point.
Andrews & Robertson auctioneer Robin Cripp said experienced buyers had returned after a prolonged absence as 83% of its 79 lots sold at its sale in the New Connaught Room on 19 February, bringing in £11m. “It is all very price sensitive so vendors cannot have high reserves. It is too early to say it’s green shoots but there’s definitely activity at the right price,” he cautioned.
Barnett Ross and McHugh & Co achieved 75% and 80% rates at auctions at the Radisson Portman Hotel and BAFTA on 19 and 23 February, raising £8m and £13m, respectively.
Auctioneer Chris McHugh said: “Experienced traders have returned, signifying they believe the market will go up.”
l Transactions at Sheffield auction house Blundells raised £1.6m as 93% of 15 lots sold.
