Figures Show North West Auctions Lead Property Market Recovery - 18/08/11
Chris Baguley, Director of specialist lender Auction Finance Limited has highlighted new figures revealing a prospering property auction market in the North West as investors flock to auction rooms to secure bargains.
The amount transacted in auction rooms across the North West is up 20 per cent for the first half of the year compared to 2010. In 2011 the region has seen £159,914,099 raised to date* through sales of residential and commercial properties.
Manchester based niche lending company Auction Finance Limited is reporting growth in the auction sector. The specialist short term lender has lent in excess of £14 Million in the auction rooms so far this year across 188 transactions, a 34 per cent increase on this time last year and is forecast to exceed £20M by the end of the year. Loan sizes vary from £25k to £1M, with the average loan size at £74,500 as most auction transactions are traditional terrace/semi/detached properties purchased by property investors.
The first half of 2011 saw almost three quarters of all properties offered at auction in the North West sold. This was an 11 per cent increase compared to the first half of 2010, bringing the total number sold to 1,781.* Nationally there was a 7 per cent rise.
Chris Baguley, comments:
"This is a strong set of figures for the region. National figures show an auction sector that's stabilising and starting to improve, but it's the North West that's leading the way. Outside of London, the North West is showing strong signs of recovery.
"Auctions have not experienced the same levels of decline as the wider property market which we know was hit hard by the recession. Although the auction market dipped it didn't suffer to the same extent. Auctions were offering solutions in terms of well priced properties and fast sales. More people are coming to us for funding as the auctions prove a popular way to buy.
"The total number of lots sold is on the up - it's a beacon of hope for the market. I'd expect the property market in general in the North West to follow suit. Figures from the auction rooms are a great indicator of the overall mood of the market - we can predict how the industry is shaping. I'm not saying a property boom like 2007 is around the corner but the picture looks promising for the region for the remainder of 2011."
Auction Finance Limited is a leading lender of specialist finance for the auction sector. It works with auction houses across the UK including Auction House, Eddisons and Clive Emson. Auction Finance Limited also works with EI Group which provides comprehensive information on the auction sector and provides the property industry with detailed information about all UK property auctions.
Graph illustrates the number of properties sold at auction in the North West rose by 11 per cent in the first half of 2011.
Graph shows the amount raised at auctions in the North West rose by almost 20 per cent in the first half of 2011, compared to the same period in 2010.
