At the start of a new calendar year, Tony Webber, Head of our Property Auction department provides a ‘View from the Rostrum’ and some predictions for the property auction market in 2012.
On behalf of the auction team here at Eddisons I extend a happy New Year to all our valued clients and hope that in 2012 the sale room will provide fertile ground for property investors, whether looking to buy or sell.
2011 finished on a positive note, with the December sale generating proceeds of just over £8.3m as 74% of the lots offered sold. Some examples of where and what investors were buying is covered later.
This brought the total proceeds in 2011 to £66,945,211 from the 16 auctions held in Leeds andManchester, which was a strong performance given the tough economic conditions which prevailed throughout the year. These strong results have helped to position the Eddisons Auction team as the 10th largest firm of Auctioneers in theUKand the largest firm outside ofLondonand the South-East in statistics released by the Essential Information Group.
Initial indications for 2012 are that results will be very much in line with last year as the economy struggles to recover and confidence remains fragile.
The key driver will once again be price, with buyers being attracted to properties which they perceive as offering good value for money. The continued uncertainties in the bond and equity markets, under performing pension funds and low interest rates on traditional savings mean we strongly believe that property will remain the investment vehicle of choice.
Buyers are also likely to be encouraged by the very slight but noticeable easing of some bank and building society lending restrictions which hounded investors during the whole of last year, leaving them to use their savings to finance any purchases.
Meanwhile, we will also be working closely with vendors to ensure that guide prices and expectations on any property which comes to the sale room are aligned to market conditions.
Our February catalogue contains a wide range of stock from vacant or tenanted residential and commercial properties, through to industrial and land, with guide prices to suit all budgets, which should get the year off to a good start.
A few examples of properties sold at our auctions inManchesteron 6 December and inLeedson 8 December revealed where and what investors are buying:
Richard joined Eddisons in 2003 and has been the Managing Partner since 2012, a role that sees him lead the strategic direction and development of the business under the ownership of Begbies Traynor Group plc. Richard has been instrumental in the growth of the business which has seen turnover more than double since 2008.
In addition to his role as Managing Partner, Richard continues to play a vital role with key clients, particularly in the banking sector, where he is a trusted adviser to major high street clearing banks. Over the last eight years, Richard has been appointed LPA Receiver on many high profile properties and assists in the recovery of distressed loan portfolios.
Prior to joining Eddisons, Richard worked in the real estate division of a 'Big Four' firm where his notable assignments included the privatisation of Saudi Telecom for flotation on the New York Stock Exchange.