Auction Homes Still Selling at 30% Below Market Value

Auction Homes Still Selling at 30% Below Market Value

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Auction Homes Still Selling at 30% Below Market Value

Homes under the hammer are still knocking up strong sales with almost 2,500 properties changing hands for £282 million.

Around 70% of all homes up for auction were sold, according to the latest UK auction statistics for September from EI Group.

The number of lots sold were up from 3,450 (3.8%) on a year ago, while the total cash raised was up 11.3% from £254 million.

The average house price at auction for a house in the UK is £113,822 – compared with £111,500 a year ago.

The average house price in England and Wales for August was £162,347, according to the Land Registry, making the average price paid at auction 30% below market value.

“Residential auctions saw an increase in every metric – for the third month in a row,” said EI Group managing director David Sandeman.

“September is traditionally one of the busiest months in the auction calendar, so it is pleasing to report on another set of positive figures. Overall a strong set of results and I do hope the encouraging trends continue.”

An increase in repossessed properties up for auction in the coming months is predicted by lender Auction Finance.

The forecast comes in the wake of an estimate of 40,000 homes taken over by mortgage lenders this year – up around 4,000 on 2010 – by the Council of Mortgage Lenders.

The firm claims more repossessed properties are selling at auction, revealing lending of £14 million to 188 buyers so far this year, up 34% on a year ago.

The lender expects to advance more than £20 million by the end of the year.

Director Chris Baguley said: “It’s likely that more repossessed properties will be sold at auction towards the end of the year and in to 2012. Buy to let investors who do their research can find properties that achieve strong yields and make excellent long term investments.”



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