Allsop Residential Auction Review 2012

Transcription

1 Allsop Residetial Auctio Review

2 itroductio 87% Success rate 1649 Lots sold 314m Total raised About Residetial Auctios Allsop Residetial held seve major UK sales throughout raisig early 314m. A total of 1649 lots were sold from a total of 1900 offered represetig a success rate of 88%. (The idustry average success rate over the same period was 74%). This is a 7% improvemet o sales reveues i 2011 ( 292m) ad cofirms Allsop as the leadig residetial auctioeer i the UK. I total the firm has raised 651m by auctio over the past 12 moths. Cofidece i the UK residetial market has cetred o Lodo ad the South East. Regioal courbatios experiecig lower uemploymet levels ad sustaied teat demad have also draw iterest. But has see a cotiued swig away from the more fragile locatios resultig i lower average lot sizes i these areas ad the cosequet eed for sesitive pricig. This report summarises the market patters which have emerged from our auctio sales i with referece to te geographic regios. We examie lot size, property types ad ivestmet yields. We also look at the global distributio of demad for UK stock. Despite the difficulties posed by a double dip recessio from the start of the year, the cotiued drought of mortgage fiace for may first time buyers ad the volatility of market cofidece exacerbated by further crises i the Eurozoe, our auctio rooms have remaied reassurigly active. As always, however, pricig is key.

3 aalysis Property Sellers Types of property offered i at Allsop Residetial Auctios Types of sellers represeted i at Allsop Residetial Auctios 41% Ivestmet 11% Part Vacat 48% Vacat 4% Commercial 12% Mixed Use 84% Residetial 2% 1% 9% 1% 3% Distressed Housig Associatio 47% Property Compay Statutory Body Local Authority Trustee Private Sellers 29% Miscellaeous 8% Almost half of all residetial lots offered by Allsop i were vacat. Ower occupiers, developers, local builders, speculators ad prospective ivestors competed i this sector. Ivestors were able to fish i a rich pool with over 40% of lots fully let ad icome producig. 11% of lots were part vacat. cotiued to see icreasig umbers of commercial buildigs with plaig permissio, or potetial, for residetial coversio or redevelopmet. Weakeig teat demad from busiesses has impacted achievable rets ad legth of leases. As ivestmet yields have softeed or buildigs remaied vacat, commercial owers have bee forced to explore alterative uses ad seek differet chaels of iterest. Paradoxically, vacat office buildigs or redudat idustrial uits, for example, have commaded higher values i residetial catalogues. Allsop cotiues to represet a broad rage of vedor cliets. Oce agai distressed stock has predomiated with almost half (47%) of all lots beig offered o behalf of mortgagees, receivers, admiistrators ad liquidators. This is a small icrease (1.2%) o volumes i May borrowers i potetial difficulty with mortgage debt have bee spared repossessio or forced sale by a combiatio of low iterest rates ad cotiued forbearace by leders. Some are survivig o short term fiace arragemets through credit cards or pay day loas. These circumstaces are usustaiable ad we foresee further high volumes of distressed sales this year. saw over 2b of domestic mortgage debt acquired by loa book specialists. As yet, these buyers have ot started to sell assets i the auctio rooms. Ievitably, this will happe as impaired loas are addressed. The proportio of lots offered by property compaies has remaied static (28% i 2011 ad 29% i ).

4 aalysis Regios Average price achieved for vacat sigle uit houses ad flats i the regios i at Allsop residetial auctios Regioal distributio of property offered i at Allsop Residetial Auctios 7% Yorkshire & The Humber 2% Scotlad 4% Wales 2% Norther Irelad 3% North East 12% North West 15% Midlads & East Aglia 18% South East 4% South West Regios Average Price North-East 39,187 North-West 51,378 South-East 167,098 South-West 120,077 Iside M25 352,809 Midlads & East Aglia 101,563 Wales 58,074 Scotlad 55,250 Yorkshire & The Humber 71,000 Norther Irelad 46,862 33% Iside M25 The chagig average lot size by value offered by Allsop i across te geographic regios idicates two sigificat shifts. First, there has bee a marked icrease i the umber of higher value properties (over 1m) to be icluded i our residetial catalogues. We attribute this to a growig appreciatio amogst sellers of the efficiecy ad fiality of the auctio method i a market affected by ucertaity ad last miute reegotiatio of private treaty agreemets. Secodly, we have see a softeig of average lot prices i areas regarded as ecoomically fragile ad improved demad ad values i Lodo ad the south east. Withi the M25 for example, they have icreased by a fifth.

5 aalysis Yields Average Assured Shorthold Teacies Yields Established i 2011 ad at Allsop Residetial Auctios % 9.45% 7.92% 8.91% 8.75% 9.64% % 6 Overall Average Lodo Oly Outside Lodo The bar chart shows a compariso of 2011 ad average yields for assured shorthold teacy ivestmets at Allsop auctios. The data has also bee split betwee Lodo ad elsewhere i the UK. Overall yields have moved out by 1% sice 2011 suggestig a greater degree of cautio i the ivestmet market. Average yields i Lodo have mirrored this chage although the shift has bee less proouced outside of the capital movig from 8.75% to 9.64%.

6 aalysis Average Yields by Property Type i 2011 at Allsop Residetial Auctios Yields Average gross yields established i at Allsop Residetial Auctios % RgR Assured Shorthold Teacy Groud Rets Bak of Eglad Base Rate 0 15/02/ /03/ /05/ /07/ /09/ /10/ /12/ /02/ 29/03/ 31/05/ 18/07/ 13/09/ 01/11/ 18/12/ Dates The graph shows the average gross yields established i three ivestmet sectors at Allsop residetial auctios. Across the year ASTs have see a average yield of 9.4% ( %). For Lodo ASTs i our sale rooms showed a average retur of 8.9% with those outside of Lodo closig at 9.64%. The AST market remais reasoably stable. Teat demad ad retal levels are favourable to ladlords. The average age of the first time buyer is 36 ad is likely to remai at a high age level for as log as mortgage fiace remais tight. Those who may have bought for the first time, were fiace available, are ow retig. This icrease i demad for smaller reted homes is likely to have bee met by reluctat ladlords who have failed to sell ito a costraied first time ower occupier market ad have bee forced to let.

7 aalysis Buyers Global ad domestic iterest show i the December Catalogue Visits 1 108,133 Over 240,000 registered subscribers 1,467,200 visits to our olie catalogue i 188 coutries ad territories Data provided by Google Aalyitics The reach of the Allsop auctio marketig has improved globally i. Our o lie catalogue is ow distributed worldwide to over 220,000 registered subscribers. I December, the o lie catalogue geerated 152,064 hits from 142 coutries, the largest foreig iterest beig from Irelad, the US, Frace ad Spai. This exposure is relied upo by may cliets, particularly baks, public bodies ad charities, to support their duty to establish best price o the day of sale.

8 highlights Vacat Lot 79 November Lot 18 - July Lot 25 - July Lot 86 November The Torbeckhill Estate, Lockerbie Scotlad Nightigale House, St Katharie s Dock Myddelto Square, Fisbury, Lodo The Old Swa I, Radwell, Bedfordshire A attractive coutry house ad mature grouds of approximately hectares (73.26 acres). A leasehold self-cotaied purpose built groud floor flat with views across St Katharie s Dock. A leasehold well located self-cotaied third floor flat. A freehold grade II listed former public house buildig. Guide price: 380, ,000 Result: 430,000 Guide price: 170, ,000 Result: 340,000 Guide price: 575,000+ Result: 685,000 Guide price: 180, ,000 Result: 220,000 Assured Shorthold Teacies Lots November Lot September Lot 139A-139F May Lot February Skylie Apartmets, St Peters Square, Leeds, West Yorkshire 20 flats sold over 4 auctios. All let. Lot February Edcliffe Apartmets, Margate, Ket A freehold ubroke purpose built corer block i seafrot locatio comprisig 29 flats, 28 subject to assured shorthold teacies ad oe vacat. Guide price: 1,300,000-1,500,000 Result: Sold Prior Lot September Grosveor Gate, Leicester 34 self-cotaied flats ad three tow houses, 7 flats ad oe tow house subject to log leases, 24 flats ad two tow houses subject to assured shorthold teacies ad six flats vacat. Total curret ret reserved 130,760 per aum. Guide price: 1.1M - 1.2M Result: 1.12M Total raised: 1,700,500 (sold i separate lots) Total Icome per aum: 154,500 Average Yield: 9.1%

9 highlights Regulated Lot 4 - February Lot 6 - November Lot 5 - July Lot 98 - ovember Putey, Lodo Highfields, East Sussex Fulham, Lodo Broughto, Northamptoshire A leasehold self-cotaied first floor flat subject to a regulated teacy. A freehold semi-detached house subject to a regulated teacy. A leasehold self-cotaied purpose built lower groud floor flat subject to a regulated teacy. A freehold semi detached house subject to a regulated teacy. Guide price: 150,000+ Yield: 4.34% Result: 1.32M Guide price: 175,000+ Result: 210,000 Yield: 4.43% Guide price: 240,000+ Result: 238,000 Yield: 2.45% Guide price: 80,000+ Result: 92,000 Yield: 5.8% Other Lot 37 February Lot 104 November Lot May Lot ovember Blackheath Stadard, Lodo Dalsto, Lodo Kirklito Hall, Cumbria Wilburto, Cambridgeshire A freehold detached buildig arraged to provide six self-cotaied flats, oe self-cotaied studio flat ad a mot garage. Seve flats vacat, garage subject to a commercial lease. Potetial for extesio ad redevelopmet subject to all ecessary cosets. A freehold detached buildig with potetial for redevelopmet. Freehold grade II listed former coutry house o site of approximately 5.62 hectares (13.89 acres). Plaig permissio for restoratio, coversio ad ew wig to form 22 dwelligs i total. A freehold reversioary groud ret ivestmet secured upo a 60 berth maria, a house, garages ad carava pitches o site of approximately 2.8 hectares (6.9 acres) ad producig 7500 pa. Reversio Guide price: 1M - 1.1M Result: 1.32M Guide price: 250, ,000 Result: 1.12M Guide price: 300, ,000 Result: 311,000 Guide price: 75, ,000 Result: 210,000

10 highlights Commercial to Residetial Lot 25 - May Lot July Lot 26 - May Lot July St Albas, Hertfordshire A freehold mid terrace buildig arraged to provide a groud floor lock-up shop uit with office accommodatio behid ad above. Groud floor shop uit subject to a commercial lease. Remaider vacat. Plaig permissio for chage of use of office accommodatio to provide ie self-cotaied flats. Wakefield, West Yorkshire Three freehold grade II* listed mid terrace buildigs. Curretly arraged to provide office accommodatio extedig to approximately 2,033 sq m (21,889 sq. ft). Potetial for chage of use to residetial subject to obtaiig all ecessary cosets. Potters Bar, Hertfordshire A freehold detached office buildig extedig to approximately 649 sq m (6,991 sq ft). Etirety subject to a FR & I lease. Plaig permissio for coversio of existig office buildig to form 14 residetial uits (2 x three bedroom flats, 10 x two bedroom flats ad 2 x oe bedroom flats). Nottigham, Nottighamshire A freehold corer office buildig with groud floor parkig subject to a commercial lease. Guide price: 750,000+ Result: 1M Guide price: 350, ,000 Result: 380,000 Guide price: 1.1M - 1.2M Result: 1.34M Guide price: 300, ,000 Result: 600,000

11 coclusio Coclusio Results Allsop s results i the residetial sector idicate a sustaied appetite for residetial property at auctio. We aticipate good attedace i our rooms ad kee competitio for stock throughout Demad is becomig less localised ad atioal ad iteratioal marketig will be icreasigly importat i establishig best price. The reach of our database of buyers is ow wider tha ever. Remote biddig is o the icrease as buyers from 142 coutries show iterest i the lots offered. (There was a ratio of 706 remote bidders to 1900 lots offered last year). We expect to see at least similar volumes of distressed stock reachig the rooms i This is likely to iclude stock from loa book buyers. As a result, first time buyers ad smaller private ivestors will see further opportuities uder the hammer. Larger lots should icrease as sellers take advatage of the certaity ad efficiecy of the auctio method. We hope that you have foud this brief summary of iformative ad look forward to helpig you to buy or sell property at auctio over the comig year. Auctio Date Lots offered Lots sold Success Rate Amout Raised December % 41,593,000 November % 48,671,749 September % 37,793,483 July % 36,590,750 May % 62,655,854 March % 37,018,501 February % 49,492,450 Total % 313,815,787 Cotacts Gary Murphy llb frics Parter ad auctioeer +44 (0) gary.murphy@allsop.co.uk Chris Berrima ba (hos) mrics Parter ad auctioeer +44 (0) chris.berrima@allsop.co.uk Michael Liae mrics Parter +44 (0) michael.liae@allsop.co.uk Jourda Prowtig Parter +44 (0) jourda.prowtig@allsop.co.uk Stuart Gayer lmava Parter +44 (0) stuart.gayer@allsop.co.uk Richard Adamso Parter +44 (0) richard.adamso@allsop.co.uk