Allsop residential auction results

Allsop Residential reported a major two-day sale this month raising £43.4m from the sale of 358 lots. The success rate stands at 78% at the time of writing, significantly higher than the 61.4% national average for June this year (Source: Essential Information Group). This brings the total revenue from Residential auction sales this year for the firm to £183.2m (86%).

The catalogue was dominated less than in previous sales by distressed properties. These only made up 27% of lots on offer (50% in May). 68 lots were offered on behalf of the firm's in-house insolvency team.

In addition, over 100 lots were ground rent investments offered on behalf of a variety of property companies and private investors. These proved very popular with 96% selling (see yield analysis below).

Commenting on the result, auctioneer and partner Gary Murphy said "this was a great result given the challenging conditions of the market. From the rostrum it was clear that bidder sentiment had hardened since our May sales. Buyers are less willing to take risks than earlier this year and there's a general apprehension about the duration of the economic recovery. This is exacerbated by continuing restraints on new lending."
Average Yield Analysis Summary:

Assured Shorthold Tenancies 8.27% 

Assured Tenancies 6.58% 

Regulated Tenancies 4.19% 

Ground Rents over 80 years 4.95%

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