UK auction property prices down but optimism remains

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Estate agents Savills has reported that property prices in auctions have fallen in the last two months, according to a September 2016 Financial Times article.

There have been some notable exceptions. A garage in Chelsea with planning permission for residential development was sold for £670,000, significantly above its guide price of £525,000. An office building in Cambridgeshire went for £565,000, meanwhile, which was 51% above its guide price.

The Essential Information Group has disclosed that the number of property lots that were sold in July was 13.3% on last year. The largest decrease has been in residential property, which is down 15.3%. Some analysts say that Britain’s vote to leave the European Union is the main cause of this slowdown.

Many property experts are optimistic about the future and point out that current conditions are far better than during the financial crisis of 2008.

Gary Murphy from auctioneer’s Allsop said:

“Volumes might be down but this is nothing like the sentiment we saw then. The banks are strong, we haven’t had people queueing outside them — there’s no reason to think a black hole is coming. Buyers are keen to get on with business.”

Some property and buy-to-let investors have said that this is a good time to buy property. Investor Sabir Manji said:

“It’s very quiet. The market is going down — but the best time to buy is when no one’s buying.”

With mortgage and bridging at low rates, there are attractive commercial mortgage offers available for property investors.

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