Allsop Residential raised £57m and achieved a 76% success rate at its 28 March sale, offering some positive news to the market the day before the UK’s original date for its proposed exit from the EU.
Held at the InterContinental London Park Lane, W1, the sale saw a total of 258 lots offered, with 192 lots sold by the end of the day.
The largest, lot 50, a leasehold building in the heart of Mayfair with a 31-year unexpired lease term, was sold on behalf of receivers for £6.6m. The 6,260 sq ft building at 33 Charles Street, W1, is arranged as five self-contained flats and was occupied on disputed terms.
Investors in the protected tenancy sector were out in force at the sale. In total, 16 regulated investments were sold, with an average yield of 3.49%. Ground rents were also popular, although there are emerging signs that specialists in this market are concerned about legislative change.
Development opportunities continued to attract bids, with several offered on behalf of NHS Property Services selling well. Lot 7 (pictured), a former health centre on a 0.15-acre site in Friern Barnet, N11, sold for just over £1m, off a guide of £820,000.
In spite of recent corrections in the buy-to-let market due to tax relief and stamp duty changes, there was sustained demand from larger investors for assured shorthold tenancy income. Lot 49, an unbroken block of 12 self-contained flats in Waltham Abbey, Essex, fully let on ASTs and producing £123,600 pa, sold for almost £1.6m.
Allsop partner and auctioneer Gary Murphy said: “We’re experiencing one of the most uncertain economic periods for decades. Yet it seems that there is still a level of resilience in our auction rooms. With realistic pricing, it’s entirely possible to generate competition and achieve strong prices. Reassuringly, we also saw a good level of post-auction activity, with deals being done on unsold lots before the day closed.
“Although there’s unlikely to be any clarity on Brexit for some months now, I think that our recent sales are demonstrating that buyers and sellers are intent on carrying on with business as usual.”
Allsop’s next residential auction will take place on 30 May.
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