Property Auction Doldrums for City Centre Apartments

The current talk in the property press is about the collapsing prices of the city centre apartment developments.

David Sandeman of the auction site Essential Information Group commented

“We are at a stage where there are now flats which are completely unsaleable. In many cases, the flats have been repossessed after the owners failed to meet rising mortgage costs.

“People believed all the hype and the marketing that they would be able to rent out their flat for £1,200 a month to a professional couple. But they could only actually get £800 a month renting it out to students who have trashed it.’

Mr Sandeman said the situation was likely to have worsened since February.

The EI Group study showed that out of 535 flats sold at auction, only 20 were sold for a profit on their purchase price.