July auction raises over £6.5m
Our sale on July 16th raised £6.5m with a further £2m now under offer, but the results mirrored the sentiment of uncertainty and caution running through the property market and the economy generally.
Despite soaring temperatures, the auction room was busy yet there was mixed bidding with some lots selling well and other, which were typical investment lots, not quite reaching reserve.
The highest price of the sale was £1.1m for three flats and an adjoining garage in Walthamstow E17. An array of vacant freehold houses in Ilford, Highams Park, South Ockendon, Shepherds Bush and Streatham sold individually for between £295,000 and £500,000 or an average £325,000.
A 2-bed vacant flat in Kensington guided at £770,000-£790,000 sold for £789,500 and, in contrast, a 2-bed flat in Leytonstone let at £10,800 pa sold for £121,000.
On the commercial front, a 620 sqft vacant commercial unit in Isleworth guided at £190,000-£195,000 sold for £191,000 and a small unit in Grantham sold for £30,000.
An interesting leasehold commercial investment in Leytonstone let on an inclusive rent of £61,000 pa sold for £522,000, a gross yield of 11.7% against a guide of £360,000-£370,000 and, in Dagenham, a more conventional commercial investment let to William Hill with the residential upper parts let on an AST guided at £335,000 sold for £365,000 to show a gross yield of 6%.
Freehold ground rents closed the day and, as usual, attracted competitive bidding selling for significantly above guide.
So, in a continued atmosphere of Brexit negotiations, political and economic uncertainty, market sentiment is comparatively cooler than the current spate of hot weather, highlighting the need for an adjustment in price aspirations in order to encourage greater buyer interest.
The next Auction will be on the 8th of October, with the Catalogue online on the 19th of September. For more information about our auctions or to register for upcoming auction emails, please email email@example.com