The property auction world continues to boom, with multiple auctioneers claiming sales success through the Bamboo platform, SDL Auctions holding its first two-day auction and a whopping £7 million investment opportunity at Strettons. Today, we take a closer look…
Record-breaking quarter for agents using Bamboo online platform
Estate agents and auctioneers who are using Bamboo Auctions’ technology to power their own online auction platforms have enjoyed record-breaking months.
Clive Emson Auctioneers, Fisher German, Hunters and Bradleys are among a large number of agents who have been successfully selling properties by online auctions throughout the lockdown period with Bamboo’s technology.
Robin Rathore, chief executive officer of Bamboo Auctions, says: “Our presence in the market was growing quickly prior to lockdown, and during this period of time we’ve been showing our value in the market.”
“The market is bouncing back rapidly at the moment, and online auctions are a great way to ensure certainty in the transaction. Whilst conveyancing is catching up on the backlog of transactions, properties sold by online auction already have legal packs in place and so are completing faster.”
Across all Bamboo platforms, over 5,000 bidders have registered for online auctions in the last three months and agents have collectively sold almost £70 million worth of property through their online auction platforms.
Growth is continuing and Bamboo has almost 200 properties listed in October and November across all agent websites.
Rathore adds: “Our customers have complete control of their own online auction platforms, and don’t need to depend on outsourced providers for auction revenue. We were there to support our customers and help them to generate revenue in a safe way, throughout the lockdown period.”
“Whatever happens in the future, our online auction technology will continue to provide a fantastic opportunity for agents to win more instructions and generate revenue faster, whilst retaining complete control over the service to their vendors.”
SDL Auctions holds its first two-day auction
SDL Auctions has announced it will hold a two-day auction for the first time in October.
Following a bumper 12-hour auction last month, the auctioneer will hold a sale of residential properties on Thursday 29 October and a commercial sale on Friday 30 October.
Managing director and auctioneer Andrew Parker comments: “After the last few bumper auctions, which have taken us well into the evening, the natural next step is to hold our October auction over two days. It makes sense to split our commercial and residential lots to provide clarity for buyers, with less waiting around for our internet bidders.”
“I am sure it will come as good news to our hardworking team, too, who work tirelessly on auction days, retaining their enthusiasm and professionalism no matter how long it takes to work our way through our growing catalogues.”
The September national property auction was SDL Auctions’ biggest yet, featuring 240 lots – 53% more than it offered in September 2019 – with properties selling for an average of 16% above their guide prices and bringing the amount raised for sellers in September to £26 million.
As of the end of September, the company has raised more than £130 million for sellers and sold more than 1,000 lots since the start of the year.
Live-streaming from its head office auction studio with remote bidding, SDL Auctions creates a safe experience for all parties while continuing to provide a valuable service to property buyers and sellers.
Anticipated lots in the upcoming sale include 26 Pitt Street in Southport, a three-bedroomed semi-detached property providing an excellent opportunity to both landlords and owner-occupiers guided at £105,000-plus, and 10 Spring Gardens in Low Fellside, Kendal, a three-bedroom cottage being sold in partnership with Herdman Homes with a guide price of £165,000-plus, among others.
“We’re incredibly proud of the way our auctions have grown this year,” Parker continues. “When the country went into lockdown in March, we were very quick to adapt our business. However, we could never have imagined how our live-streamed auctions model would grow to become the most successful in the UK.”
“As a result of our growing status, we are being asked to help an increasing number of sellers from all over the country and already have more than 100 properties on our website for our first two-day auction.”
£7m residential investment the star of Strettons’ October sale
An unbroken freehold residential and retail investment at 86-92 Lewisham High Street, guided at £7 million-plus is the highest guide price at Stettons’ national property auction on Thursday 29th October.
The investment comprises a terrace of buildings located on the northern end of Lewisham High Street and is configured as four retail units and 14 self-contained flats. It currently produces £521,320 in rent per annum.
Director and auctioneer Andrew Brown comments: “This is an attractive investment opportunity so, unsurprisingly, we have already seen significant interest. The properties are situated in a prime retail location adjacent to The Lewisham Shopping Centre and close to Lewisham Overground and DLR station. All residential units have been recently refurbished and are fully let so we anticipate that Lot 2 will attract very competitive bidding on the day.”
The investment is one of 52 properties in Strettons’ diverse catalogue. It features lots from across the UK with residential, commercial, ground rents, land and development opportunities available.
Elsewhere in London, a freehold vacant 21 room hotel with residential development potential in South Woodford, E18, has a guide price of £1.7 million-plus. In Maida Vale, W9, a freehold residential investment comprising eight flats (two let on ASTs) and six ground rents with 61 years unexpired, has a guide of £730,000-plus.
The sale also features several plots of land in London which will attract the interest of developers. In Walthamstow, E17, a freehold vacant site with residential planning permission for a 1×3 bedroom house and 2×2 bedroom flats has a guide price of £450,000. In Surbiton, Surrey, KT6, a freehold vacant site with planning permission for a detached 5-bedroom dwelling is guided at £525,000-£550,000.
Brown adds: “Given the ongoing Covid-19 social distancing regulations our October sale will be held remotely with internet, telephone and proxy bidding available. I am looking forward to the sale and adding to the £42 million we have raised for our clients at our remote auctions since the start of the Covid-19 pandemic.”
Over £52m of capital value raised in September at iamsold
iamsold, one of the UK’s largest property auctioneers, secured £52,706,446 in capital value for sellers last month – an increase of 16% on the same period last year.
During the month, 350 properties were sold via the Modern Method of Auction (MMoA) and 3,563 bids were made – the highest number of monthly bids so far this year.
There was also a 9% rise in average sale price for the month compared to September 2019.
iamsold’s Managing Director Jamie Cooke believes the uplift is down to a ‘broader spectrum of properties being sold via MMoA’ as sellers are prioritising speed and security more than ever before.
He says: “Vendors are taking advantage of the certainty of sale that MMoA brings. We are seeing more adoption within our network in the southern regions, and across the UK agents are experiencing more interest from vendors with properties in the higher price brackets. All of this is contributing to the increase in capital value, average sale price and volume of bids.”
“As a nation of homeowners, it’s likely that we will continue to spend more time and money inside our homes into the New Year and less time outdoors. Many people will be rethinking if their current home suits their lifestyle now, and in the longer term. This will help to maintain activity in the market as people look to buy and sell to a bigger home, one with a garden or in a more rural area for example.”
He adds: “In addition to this is the Government’s new 95%mortgage scheme for first-time buyers. Demand from first time buyers will support the whole market so we look forward to seeing how this is adopted.”
This post has originally been featured in Property Investor Today.