Auction House sales figures in May marked the fifth month in a row of improved fortunes for the group, which has a branch in West End, Southampton. Its five month results from January are currently 8.8% up on 2015, with 1,250 sold at a success rate of 76% and £165m raised.
Commenting on the figures, Auctioneer Steve Sprake said: “These results strengthen the case for regional auctions at a time when the residential market is struggling. The combined effect of Stamp Duty changes and reducing tax relief on Buy-to-Let mortgages is coupled with increasing uncertainty ahead of the referendum on Britain’s membership of the EU. Nevertheless, Auction House had another very successful sales month with 221 lots sold – a 7% increase compared to last year.”
Steve Sprake says that recent auctions included examples which illustrate the importance and value of local stock being sold to local buyers through nearby auction rooms.
He explains: “There was a noticeable increase in activity this time from local buyers looking for homes for themselves. One particular property in Colden Common, near Winchester attracted a tremendous amount of interest from homeowners, all of whom were in the position to buy and this reflected in the offers that were made in the Auction room on the day. Needless to say that the eventual price achieved well exceeded the reserve.
“These examples are cases where urgency and opportunity favoured a local auction as the preferred method of sale. Best prices were achieved due to the local knowledge of the auctioneers and extensive database of buyers on their registers, together with effective promotion across the area.
“In the coming months, local portfolios and individual lots in other parts of the country will come to market as investor landlords adjust their future plans, and unpredictable circumstances bring about the sale of unmortgageable properties. Regional auction rooms are without doubt best placed to deliver quality results on such stock.”