West landlords are turning to auction to sell property in a win-win-win situation…
The group – which last month became the first auctioneer in the UK to sell its thousandth property in 2013 – says that more and more landlords with tenants in place are heading to the local auction house, rather than the traditional estate agent.
Nick Cragg, chairman of Chipping Sodbury-based Auction House (West of England) said: “Auction is fast becoming the method of choice when it comes to selling tenanted homes. Whereas estate agents tend to sell vacant properties to owner-occupiers, auctioneers have a long history of selling residential investments to the buy-to-let sector.
“The beauty of an auction is that the tenants can stay where they are. This means that there is no ‘void’ period or loss of income. Even if, for some reason, the property doesn’t sell, the landlord still has a tenant in place.
“What’s more, the buyer – invariably another landlord – has the benefit of a ready-made tenant in situ without the time, trouble or cost of trying to find a new one, so the rental income starts immediately.”
But it is not just seller and buyer that benefit from this arrangement, according to Nick.
“We mustn’t forget that these circumstances are better for the tenants as well,” he said. “They continue to have a roof over their heads, and only have to deal with a change of landlord, rather than moving home. It’s a ‘win-win-win’ situation: better for sellers, buyers and tenants themselves.”
Auction House (West of England) is part of the country’s largest residential auctioneer in terms of lots sold. The group recently released sales figures for May showing that it held 14 auctions in the month, selling 189 lots at an 81 per cent success rate, raising more than £19m (£19.263m).
A total of 351 lots were entered into auctions in June, making it the second biggest month of 2013. The group has expanded into Scotland for the first time, with the launch of a branch in Glasgow.
Nick added: “There is a strong case for investing in property at the moment – not only because of the strong yield available from rental tenants, but capital appreciation too. Many indicators suggest that after several years of price stagnation we are now entering a period of growth, which is why there are so many prospective purchasers out there, actively looking to buy properties to let out.
“The speed and certainty of auction, combined with our knowledge and experience of each area, means that we can channel all our lots through regional sales rooms, to achieve better prices from a local audience.”
Auction House (West of England) is accepting properties for inclusion in its next auction at Thornbury Castle on October 16. For more information visit www.auctionhouse.uk.net/westofengland or call 01454 855060 or email firstname.lastname@example.org
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