Vacant Properties Fuel Demand in Auction Rooms - 28/06/11
Vacant properties are providing rich pickings for auction room investors, due to the number of repossessions rising by almost a fifth.
The Essential Information Group (EIG), which provides details of every UK property that goes to auction, reports the number of repossessions going to auction this June is up 45 per cent compared to June 2010. In May 2011, the overall lots sold increased by 30% compared with the previous year.
Over 20 per cent of all residential lots offered at property auctions are repossessions.
Chris Baguley, Director at Auction Finance Limited, a lender which provides investors with fast funding for auction purchases, said:
"A lot of good stock has come on the market recently. You only need to take a look at the sales catalogues and the auction rooms where transactions are taking place. Roughly a quarter of all repossessions end up in the auction room - if you have never bought at auction before - now is the time, whether you're looking to get on the buy-to-let property ladder or you are a seasoned investor.
"Where repossessed stock is coming to the market auctions are the answer - as a sale can be secured on the day of the auction. Investor opportunities are ripe for the taking - these properties can generate a good yield on rental income."
Over 35,000 properties go to auction every year. Sales figures for auction rooms are on the increase with 67 per cent sold in April 2011, compared to 60 per cent in April 2010.
Auction Finance Limited provides short-term funding nationwide to investors buying properties at auction. It works with auction houses nationwide including Eddisons, Auction House and Clive Emson.
