auction market update summer 2015

Transcription

1 auction market update summer 2015

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3 Introduction Hard on the heels of our record breaking year in 2014, I am delighted to report that Barnard Marcus have continued to lead the field of London Auctioneers, having again offered to the market more lots than any other residential Auctioneer in London. Against the backdrop of a reduced market, where election fever dominated the first half of the year, we have brought some 850 lots to the market (with a further 190 lots in our July Auction); we boast some 23.1% of lots offered in the London Auction Market. These London based national auctions continue to offer one of the widest ranges of types and styles of properties available under one roof in the marketplace. Buoyed by continued increasing prices, the total raised for our clients in the first six months of the year stood at over 115m, with the average price per lot sold being 180,559 up from 157,998 in the equivalent period last year. For Sequence Auctions overall, including our regional rooms in Southampton, Norwich, Derby and Leeds, the figures stand at an impressive 1,292 lots offered with a sales capital value of 148m. With the election now firmly behind us, all indicators show the market moving confidently forward. I look forward to our autumn season of auctions with an auction each month from September until the end of the year. Our next auction is planned for 8th September and with an expanding client base we already have instructions on an exciting range of properties to suit all types of buyers. Christopher J. O. Glenn Divisional Managing Director, Barnard Marcus Auctions Barnard Marcus continue to bring more lots to market than any other residential auctioneer 3

4 Results Market share Volume of lots offered by London residential auctioneers (1st January 2015 to 30th June 2015) 850 Lots Offered 637 Lots Sold Barnard Marcus 23.1% Brendons 1.0% Athawes 1.3% MS Auctions 1.4% Network Auctions 2.1% McHugh & Co 2.6% Lambert Smith Hampton 3.3% Countrywide London 3.8% Strettons 4% Harman Healy 5.1% Andrews & Robertson 5.9% 115.2m Capital Raised 23.1% Market Share Auction House London 6.14% Allsop Residential 20.8% Savills 19.2% We continue to maintain our leading market share of lots offered 4 Data Source: The Essential Information Group

5 National Auctioneers Barnard Marcus are the leading brand within Sequence Auctions, holding 10 National Auctions in Central London offering a broad mix of property for investment and occupation 2015 Regional Analysis (year to date) Region Lots offered Lots sold Average Sale Price Region Lots offered Lots sold Average Sale Price 2015 Investment Yields (year to date) Lots offered Lots sold Yield Greater London ,333 East Midlands ,500 Assured Tenancies % SE Home Counties ,737 Wales ,190 Ground Rents % North West ,920 Scotland ,375 Regulated Tenancies % Yorkshire & The Humber ,144 East ,075 Total West Midlands ,247 Ireland ,000 South West North East ,220 42,833 North Total , ,859 4 further auctions are planned in 2015 from our central London locations 5

6 Market Update Instructions from private clients have continued to dominate in our auctions this year, as low interest rates and the improving employment statistics have moderated the flow of repossession cases to auction. In the first half of the year some 75% of entries in our catalogues was made up of stock in this sector, with an increasing number of high value properties featuring, as more and more sellers appreciate auction as being the best method of sale to maximise sales values. Stock in London and the South East continues to outperform with demand constantly outstripping supply. The Buy-To-Let market has remained strong and with nearly a quarter of our catalogues made up of property in this sector, we continue to bring a strong flow of investment opportunities to both existing and new investors. The overall average yield year to date stands at 6.94% demonstrating property as the leading investment choice of the year. James Paterson Operations Manager During the year to date we have continued to add further Local Authorities and Public Body clients to our client base and we look forward to bringing a range of varied and interesting purchase opportunities to the rostrum in our autumn season of sales. As ever legal documentation on all available properties is available to download free of charge via our website Our next auction is planned for the 8th September, with the catalogue being available to view online from Friday 21st August 6

7 Auction highlights LOT 6 JUNE AUCTION Freehold house in Uxbridge Guide 250,000 LOT 11 JUNE AUCTION Freehold building in Notting Hill W11 Guide 1.6m LOT 91 JUNE AUCTION Freehold building in Bradford Guide 270,000 LOT 20 MAY AUCTION Freehold end terrace part vacant building in SE19 Guide 400,000 LOT 37 MAY AUCTION Freehold bungalow in Purley, Surrey Guide 330,000 LOT 65 MAY AUCTION Freehold detached house in Haringey Guide 450,000 Sold for 346,000 Sold for 1.75m Sold for 450,000 Sold for 750,000 Sold for 710,000 Sold for 614,000 LOT 15 APRIL AUCTION Leasehold flat in Bromley Guide 215,000 LOT 4 MARCH AUCTION Freehold bungalow in Ruislip Guide 265,000 LOT 33 MARCH AUCTION Leasehold 3rd floor flat in Mayfair W1 Guide 650,000 LOT 63 FEBRUARY AUCTION Vacant house near West Malling Guide 245,000 LOT 65 FEBRUARY AUCTION Former NHS Clinic in Tonbridge Guide 375,000 LOT 4 FEBRUARY AUCTION Vacant freehold building in SW2 Guide 375,000 Sold for 340,000 Sold for 380,000 Sold for 756,000 Sold for 325,000 Sold for 550,000 Sold for 548,000 7

8 Market/Economic update Inevitably the first half of the year was dominated by the election; nonetheless a number of economic indicators continued to bode well for the property market. Whilst many would-be sellers have hesitated from selling causing a shortage of properties coming to market, prices have continued to advance, albeit at slower rates than were seen at the outset of the year. At the end of June overall price increases for England and Wales showed an annual increase of 4.6%, down from 6.5% in January. London continued to outperform the overall market with increases at 9.1% down from 12.4%. The Auction market reflected the overall sector with the number of residential properties offered at Auction in quarter 2 standing at 6,604 some 11.6% lower than the equivalent period last year. However latest data from The Essential Information Group suggests that the corner has been turned with lots offered in June up 0.9% to 2,443. Repossessions have continued to decline and in the first quarter stood at 3,100 (down from 4,200 in the fourth quarter of last year, and 6,400 in the first quarter of 2014). Overall mortgage lending as reported by the Council of Mortgage Lenders (CML) stood at 96.6b down slightly from 98b in the equivalent period last year. Figures for June show the trend being reversed with lending up compared with June The CML commented further that a benign economic backdrop should underpin a gentle improvement in housing and mortgage market activity. The affordability constraints brought about by The Mortgage Market Review (MMR) have continued to adversely affect the first time buyer market, with consequential continued growth in the Buy-to-Let market where the private rented sector has recently outstripped social housing to become the second largest tenure, housing about 4.5 million households in England alone. Stock markets remained volatile over worries about the Greek debt crisis and major falls in share prices in China, and whilst the FTSE hit all time highs of 7,122 in April remain broadly unchanged from the outset of the year (6,620 at 30th June v 6,566 at the beginning of January). Although interest rates remain at their historic low of 0.5%, recent comments from Mark Carney indicated that inflationary pressures may precipitate modest increases from as early as the end of the year. 8

9 Growing client base and choice of property Barnard Marcus offer one of the widest spectra of property available for sale under one roof. Many existing and new clients are experiencing the added benefits we offer as a national auctioneer with a chain of agency offices offering truly national strength with local knowledge. Just a few examples of clients we have acted for this year include: 9

10 What we can do for you If you are looking to sell and have not yet considered auction as a potential route to sale, why not call a member of our team for a free, no obligation discussion and appraisal. Auctions offer a valuable alternative route to sale for those wishing to maximise price within a defined timescale. Typical properties suitable for sale by auction include, but are not limited to: Vacant property with potential for improvement or development LPA Receivership cases Repossessions Properties with legal or condition issues Regulated tenancy investments Assured tenancy investments Ground rent investments Sites with or without planning permission Probate cases Commercial Property (vacant or for investment) Property portfolios High demand locations where demand outstrips supply To find out what we can do for you call now! 10

11 Meet some of the team Christopher J. O. Glenn Divisional Managing Director Brian Grante Sales Manager/Auctioneer James Paterson Operations Manager Max Ferrari Negotiator Richard Vango Negotiator Lucia Pincott PA to Divisional Managing Director Meghan Mamo Corporate Sales Manager Nathan Greaves Negotiator Matthew Rosenz Client Relationship Manager Sharon Chandler Contracts Manager Kimberley Heath Accounts Manager Sheila Naughton Telephonist Milana Abromikas Administration Billie-Jo Stanley Corporate Sales Administrator Thomas Mason Junior Negotiator 11

12 Forthcoming auction dates Auction date Tuesday 8th September Monday 12th October this auction only - venue changes to Hotel Russell Monday 16th November Tuesday 15th December Wednesday 3rd February 2016 Tuesday 8th March 2016 Tuesday 12th April 2016 Tuesday 17th May 2016 Tuesday 21st June 2016 Tuesday 26th July 2016 Closing date for instructions 14th August 18th September 23rd October 20th November 8th January th February th March nd April th May st July 2016 Contact our auctions team on: Sovereign House, 361 King Street, Hammersmith, London W6 9NA auctions.hammersmith@sequencehome.co.uk Follow us Marcus Au