Buying properties at auctions continues to attract many investors, with numerous sales far exceeding guide prices.
One of the most sought-after areas to buy property is in Cambridge. Many high profile companies, such as Amazon, Google and Astra Zeneca have centres there, which has created a high demand for houses among people wanting to move to the area.
Property auctions at Cambridge auctioneers Cheffins have been making high prices. For example, in July 2016, PropertyInvestorToday.co.uk mentioned a building in Hills Road with a mixed commercial and residential use auctioned for £608,000, which was £183,000 more than the guide price.
High auction prices are not confined to Cambridge. A report by the Essential Information group was cited by InsiderMedia.com in June 2016, revealing that auctions revenues in the Midlands grew by 8.6% from January to March 2016.
In Liverpool, property firm Sutton Kersh raised £4.3 million in its May property auction, with many properties selling above their guide price, said the Liverpool Echo in June 2016.
Many properties are purchased as investments by buy-to-let landlords. Stamp duty rose by 3% in April for landlords purchasing residential property, but this has not put landlords off. Thanks to the availability of commercial bridging finance, and with 2016 rent rises of 2.6% reported by the Office for National Statistics in May 2016, buy-to-let properties are considered a good investment by many landlords.
Commenting on the continuing success of property auctions, Dave Sandeman of the Essential Information Group said:
“Many predicted that the recent changes to stamp duty would cast gloom over the market, but the gains in the residential market certainly buck the trend and dispel any notion of a declining market.”