Bidding Wars over City Properties - 05/12/11
Competition in auction rooms across the UK is heating up as property professionals snap up desirable city centre properties.
House prices in city locations have increased more quickly than out of town properties, climbing on average by £524 a month over the last decade.*
National lender Auction Finance Limited says this trend is expected to continue. Astute buy-to-let investors are snapping up city location properties now and are looking to auctions for the best deals.
In recent years city locations have seen a rental boom as mortgages have become difficult to secure. City homes have become especially desirable for tenants and buyers keen to save commuter costs.
Salford is the least expensive UK city with an average house price of £105,833, whilst Westminster is the most expensive at £570,964, research has revealed.*
Scott Hendry, of Auction Finance Limited, a national lender which provides loans for purchases before, during and after an auction, said:
"Auction rooms across the UK are bustling at the moment. People considering making an investment need to act now otherwise they may miss the boat when they can't afford to buy a few years down the line when prices are sky high.
"Commuting into city centres is getting increasingly expensive. Rail prices have soared and petrol is draining away people's finances. Investors know city properties are in demand more than ever as people want to reduce the costly commute. The auction rooms are proving popular as properties can be snapped up 20 - 25 per cent below the market rate. There are some good deals to be made and investors aren't afraid to let the bidding wars get underway."
Auction Finance Limited typically lends 70 to 75 per cent on a property and loan sizes vary from £25,000 to £1m, with an average loan size of £74,500.
Auction Finance Limited works with auction houses across the UK including Auction House, Eddisons and Clive Emson.
* Research by Halifax. October, 2011
