LANDLORDS are being urged to snap up last minute bargains at auction as repossessions fall and house prices increase.

According to specialist lender, Auction Finance Limited, landlords who are thinking of purchasing property at auction, should act now to snare a good deal.

In a recent statement from The Council of Mortgage Lenders, it announced a cut in its forecast of the number of repossessions for 2009 to 48,000, from an initial prediction of 75,000.

Chris Baguley, director at Auction Finance Limited, which provides finance for investors buying property at auction, said:

"A fall in the number of repossessions will mean a shortage of stock at auction houses, pushing up the price of properties.

"UK property prices are experiencing the largest increase in six years, so the market is set to change considerably, which could mean properties that were previously a good deal are no longer available.

"At the moment, there are some excellent properties with good yields. These are outperforming record low interest rates on savings accounts.

"Last month, 1,936 residential lots were sold at auction. Approximately 20 per cent of all residential lots offered are repossessions, with some properties going for as low as 60 per cent of the original price it was bought for.*

"With this in mind, property investors who've been thinking about purchasing at auction should act now if they want to take advantage of the good value properties currently on offer."