Two predominantly residential sales held last week raised more than £80m between them, driven in part by the 30 June end to the £500,000 nil rate band for stamp duty.
McHugh & Co was the largest, setting itself another new record with a total of £44.3m from 202 lots sold on 3 June, a 92% success rate.
This was up from £40m in April and more than double its June sale in 2020 and its July sale in 2019. It brings McHugh’s total for the first half of the year to almost £155m.
The temporary nil rate band of £500,000, introduced because of Covid-19, was extended beyond the original 31 March end date to 30 June in the budget in March, giving buyers an extra window of opportunity to save up to £15,000. From 1 July to 30 September, the nil rate band will be £250,000. It will then return to the standard amount of £125,000 on 1 October.
Auctioneer James McHugh said the firm would be holding its next sale on 14 July and a special sale on 2 September – instead of at the end of September or early October – in order to assist sellers and buyers with the cut-off. “I can’t see any further extensions happening,” he said.
Star sales
Highlights of the latest sale included a rare detached house on sought-after Gibson’s Hill in Streatham, SW16 (lot 12), which attracted competitive bidding from owner occupiers. It sold for £752,000 from a guide of £400,000-plus.
In Upper Holloway, N19, a three-storey property split into three flats (lot 39) – one regulated tenancy and two vacant – sold to an investor for £1.2m from a guide of £1.1m.
Meanwhile, local bidders competed for a lock-up garage in Highgate, N6 (lot 181), before it sold for £61,000 from a guide of £25,000.
Savills raised £37.3m from 107 lots sold the previous day, a success rate of almost 70%.
This was Savills’ largest June sale since 2015 and brings its total for the first half of the year to almost £160m, nearly double the amount raised in the same timeframe in 2019. It has also held extra sales to accommodate those looking to buy or sell before the various stamp duty holiday deadlines. Several properties in the latest auction were placed with it having failed to sell via private treaty.
Auctioneer Jeremy Lamb said the temporary stamp duty relief was certainly fuelling the market but was not the only factor driving activity among investors, traders and end-users. “There is so much change in people’s lives at the moment and that is also a key driver,” he said. “Market fluctuations are usually driven by small changes, but we are seeing such significant change in people’s lives that it’s no surprise that it is driving people to make decisions. We are seeing the benefit of that through auctions.”
Auctions rise in popularity
He added: “Traders are having a great time selling things on and end users are also very active, which is always a sign of a strong market. End-users are turning to auctions in greater numbers because they are struggling to buy through private treaty.”
Phone bidding continued to prove popular, he said, with 20% of lots selling to telephone bidders in the June sale.
Highlights included a three-storey mixed-use investment opportunity in Twickenham (lot 78, main picture) arranged as a ground floor shop with four flats above. It was guided at £990,000 and sold for £1.05m.
A three bedroom semi-detached period house in Bush Hill Park, Enfield (lot 23), was guided at £560,000 and sold for £775,000 after competitive bidding.
A rarely available red brick water tower in Braintree, Essex (lot 113), was guided at £50,000 and sold for £286,000.
A cottage in Exeter, Devon (lot 122), was guided at £180,000 and sold for £270,000.
Savills next auction will be held on 7 July.
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