As the cost-of-living crisis bites across the property sector, Toby Limbrick, Director at Network Auctions, claims their latest results from June 9th shows bidders are now seeking value rather than growth.
‘For the last couple of years, plots of land, with and without planning, have been the darling of the auction room. Bidders have felt confident in their speculations, but now we’re seeing a return to value-led projects. The soaring price of materials along with increased labour costs mean bidders are shying away from land and the uncertainty of costs.’
‘Our latest results show demand remains strong for opportunities to add value through refurbishment, development and problem solving (short leases, defective titles etc).’
‘Our lot of the day was a property comprising two spacious maisonettes, with one in shell condition. The properties, located in Fenham, Newcastle Upon Tyne, were in a prime position facing Newcastle General Hospital with potential for serviced or short-term accommodation. Bidders fought each other to a hammer price of £176,000 against a reserve of £79,000.’
‘Our deal of the day was a freehold portfolio of 10 self-contained flats in Wallsend, Tyne and Wear producing £47,340 per annum, with a potential to increase to £56,500. With 57 bids, the hammer price reached £376,000. This lot still shows good value for money for the buyer with such a strong income yield and potential for growth.’
Overall, Network Auctions achieved a 80% sales success rate and raised £2.8 million.
Network Auctions next auction will be held on 14th July.