Property auction sales rose in May

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Sales at property auctions increased sharply in May 2016 which contradicted predictions that they would fall.

Buyers wanting to find a good property deal and people investing in the buy-to-let market use auctions to find property at reasonable prices.

Many property experts thought that the increase in stamp duty on buy-to-let properties and the changes in tax relief for landlords would slow down property auctions sales. There were also fears that uncertainty about Britain remaining in the European Union would make investors wary of investing in property.

The latest figures reported by Property Investor Today show that sales have in fact grown. The amount raised in property auctions in May was £524.6 million which is the largest amount for May in nine years. This was raised in 3,200 lots which were up 21 percent compared with May last year.

Residential property sales increased by 24 percent and the commercial property market by 14 percent. The growth of the property market is made possible by bridging loan lenders who provide finance for buy-to-let landlords purchasing properties at auction.

David Anderman of the property auction information organization Essential Information Group said:

“These results are particularly pleasing as they’ve come against a backdrop of economic and political uncertainty caused by the impending EU referendum, which many forecasters warned could have a short-term detrimental effect on the housing market.”

If May’s increases continue in 2016, then this indicates that 2016 could be a good year to invest in both residential and commercial property.

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