18 April 2013|
Strengthening demand for vacant and tenanted residential property located within the M25 underpinned results at Andrews & Robertson's 15 April auction.
The sale raised revenues of £11.2m producing an average lot size of £149,000 and success rates of 76% after 73 out of 96 lots traded hands. Some £8.7m worth of property sold was within the M25, and £1.7m was raised from sales in the South East of England.
There was multi bidding at The Hotel Russell, London WC1 on lots perceived to be in desirable locations, high yielding secondary commercial stock, while receiverships and local authority lots in London also produced final bids that were above guides
With returns on deposits in the bank still at very low levels there was increasing signs that investors are looking towards residential property investment to make higher returns on their equity, according to Robin Cripp, a&r's chairman.
Cripp said: "AST yields on tenanted residential property at this auction reached 7.7%, a very good return on a property costing an average price of £140,000. Returns on regulated tenancies costing an average of £170,000 were 4.6%.
"As pensions underperform it is little wonder that we are seeing growing numbers of private buyers looking for a secure home for their money and a long term investment that pays real dividends coming to our auctions. Auctions are increasingly regarded as the swiftest and most efficient transactional platform for property sales and regarded as the method of first resort by vendors."
Auction highlights included:
For further information contact Robin Cripp, chairman, on 020 7808 8530/ website www.a-r.co.uk