Good to know that some people are flourishing in the current housing market: a recent two-day residential sales auction held by Allsop's raised a whopping £57.8 million.
From a total of 595 lots, 510 (86 per cent) were sold, a far higher result than the average success rate for residential property auctions (59 per cent).
Allsop's revealed that 75 per cent of their recent sale comprised properties from a variety of prime and sub-prime lenders. Other lots in the auction came from sources including housing associations and local authorities.
Speaking after the sale, auctioneer Gary Murphy, commented: "There is still a market for residential stock. Our team has worked closely with owner clients to ensure realistic pricing.
"I would have been concerned if bidding had limped up to reserves and no further. But competition drove prices higher in the majority of cases.
"Traditional high street sale routes are failing to find buyers and auction is now the only place where sellers can be confident of securing commitment.
Buyers From Across the Board
"Although the seasoned traders and investors are back in search of a deal, private buyers are giving them a run for their money. It's apparent that non professional, cash investors recognise the emerging opportunities that auctions present.
"First-time buyers, parents, couples, owner occupiers have all come to the room to buy at what they perceive to be attainable and sensible market levels."
In related news, figures released by the CML (Council of Mortgage Lenders) show that repossessions are up 12 per cent for the 3rd quarter of 2008 when compared with the same period last year.
But according to the Essential Information Group figures, the number of repossessions being offered at auction have seen a much more dramatic rise. In Q3 2007, 1,187 repossessions went to auction, however in Q3 2008, 2,185 were offered, a rise of 85 per cent.
David Sandeman, Managing Director of Essential Information Group, the property auction analysts, commented: "The dramatic rise in repossessions at auction is the combination of two factors, the slowing housing market in the UK and the increasing desire of Banks and Building Societies to liquidate their repossessed stock."
Property sold at Alsop's recent auctions on October 30 and November 3 included:
Lot 77
176 Elsley Road, Battersea, London SW11
A vacant freehold house offered on behalf of Peabody Trust with a guide of £260,000 to £280,000. Sold for £316,000.
Lot 158
7 Helen Cottages, Dedworth Road, Windsor
A vacant 3 bedroom cottage for mortgagees. Sold for £145,000.
Lot 531
Apartment 301, Sky 1, 33-35 Simpson Street, Manchester
A third floor new build 2 bedroom flat for mortgagees. Sold for £75,000.
