Commercial Property Auctions

North West

Commercial and mixed lots are selling well and buy to let properties being sold at auction attract a lot of competition. Retail premises also sell well including pubs, clubs and bars. Investors now seem to be widening their portfolios to inclue properties other than the usual residential houses. Merseyside has had a lot of property for sale at auction recently probably due to the rise in repossessions the area has seen of late. In Bootle a property in need of modernisation and repair sold for £50,500 twice its guide price.

Yorkshire

The rise in Auction sales is due to television exposure claim some auctioneers in this area. Here the market is buoyant but perhaps less than a few years ago. The numbers of houses for sale have been the highest ever and buyers have a lot of properties to choose from.

One auctioneer says that many vendors are expecting too higher price for their property. Now the interest rate stands at 5.75% not so many investors will be able to get finance.

Midlands

Here again television is being credited with the rise in auction sales. Property prices here are cheap compared to London and properties needing attention sell for £40,000-£50,000. Commercial property is also cheap and land and cottages together with the out of the ordinary property are selling well.

The days of only run down property being auctioned are considered to be long gone.

East Anglia

The auction market here is good with plenty of property for sale. Investors are reviewing their portfolios and are selling those properties with a low yield.

Most investors want to either modernise or convert older properties. Because of the fact there will be more vendors than buyers soon some very worth while properties could come to auction.

South East

Here it seems the auction market is slowing. Some property is being priced too high and not selling. Property investment is safe as long as returns remain better than other types of investment. In the South East land seems to be the most popular auction lot at present.

South West

Auctions in the South West are increasing. People see it as a way of getting a good price and quick sale. Run down properties, land farm for conversion and building plots sell the best in this area. Here again it is said if the price is wrong the property will not sell. Planning permission is being tightened in the West Country and smaller builders are now being able to buy plots although the price of these tends to be high.

London

Industrial property is popular as it is cheap and investors get a good deal.

Offices are not selling at auction at the moment as they are not seen to be rentable.

Although investors are still buying they are being more careful because of higher loan rates and HIPs.

Private investors in London are looking at investments to provide a pension rather than income. Londoners also buy at auction because it is a quick and easy process. Councils use auctions to sell their surplus residential properties.

Commercial Auction

In June a mixed-use auction was held which included both commercial an residential properties. It was a two-day auction, day one in Leeds had a success rate of 65%. There were 114 lots and of those 73 were sold raising £6.5m. Day two, in Manchester, had a 74% success rate and of 23 lots for sale 17 were sold raising over £1.7m.

People are generally becoming more careful about buying commercial property this is likely to be the main reason why so many commercial investments were not sold.

A freehold shop with multiple tenants, in Grimsby, had a guide price of £155,000 but sold for £135,000. There was also a three room flat on the first floor that had an assured tenancy agreement with an income of £15,600pa yielding 11.5%.

A freehold terrace bar with a three room flat, in Hull, was sold prior to auction for around the guide price of £200,000 with a 15 year business lease which began in 2005 giving the buyer an income of £16,000pa.

A freehold shop in Birkenhead sold for £5,000 above the guide price of £65,000. It was bought by a hairdresser who also signed a 15 year lease from June 2007 with an income of £8,500 the yield is 12.1%.

Also offered at the auction was the Bronte family home. It is a Grade II listed terrace house with 4 bedrooms, 3 staircases, split level dining room and a lounge. Since the Bronte’s lived in the house it has been a butcher’s shop and a restaurant. The guide price of £180,000 was not reached at the auction but was sold afterwards. Plans for this property are unclear.

A large detached period house was also being offered for sale at the auction with a guide price of £600,000. It comprises of six self-contained apartments and gives an annual income of almost £34,000 giving a yield of 5.2% and was sold for £653,000.

Interestingly 17 properties were sold prior to auction and the agents holding the sale say they are now assessing properties for auction and tell vendors to accept good offers prior to the auction as they may not get such a good offer at auction as investors will not pay over property values.