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Thursday, February 24, 2011

Auction results & yields

Allsop's Residential Auction team kicked off 2011 with a £45.5m two day sale on 15th and 17th February posting an 83% success. This compares with a £40m total in February 2010.
"It seems that auction buyers have returned to the market with determination" said auctioneer and partner, Gary Murphy. "We were encouraged by a strong attendance from the start with enthusiastic bidding across all sectors."

Day One saw a total of 23 regulated tenancy investments go under the hammer. Strong competition between the main players in this specialist market ensured that 22 sold at strong prices (96%).
Ground rents sold well, particularly houses subject to shorter unexpired lease terms.

A selection of 45 lots in the Midlands on behalf of Network Rail drew much attention. Streets of houses subject to assured shorthold tenancies were broken up to investors along with surplus sites of various shapes and sizes with potential for development. 40 Sold (89%).

No less than seven housing associations were represented offering a total of 32 lots. 29 sold (91%). Seven local authorities offered 13 lots of which 10 sold (77%).

And previous resistance encountered to stock in some parts of the North of England appears to have faded. "Towards the end of last year, we experienced a dip in success rates outside of the perceived safer areas of London and the South-East." said Murphy. "At this sale, we were selling Northern stock more easily. Confidence in the regions appears to be returning."


Of the 70 Asurred Shorthold lots offered 61 sold representing a 87.1% success rate with an average lot size of £99,869 and a rental yield of 8.2%.

23 Regulated tenancies were sold with an average rental yield of 4.2% whilst the average yield for the ground rents sold was 6.3%

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