The large crowd at McDowalls’ March 24 sale bought 12 of the 22 mainly east London properties in the room. With eight others going prior, the total raised was £564,500.
The firm’s auctioneer, David Hobbs, was encouraged. “There was competitive bidding for most of the lots — which is a feature missing from auctions during the last 12 to 18 months. Indeed, we have struggled to reach reserves recently and prices have gone down. If the level of bidding is repeated at the next sale, I will believe the market has bottomed out.”
In particular it was the smaller lots which exceeded all expectations. “The one- and two-bedroom properties attracted interest. It seems that property companies and dealers are buying them to rent out.”
Examples of this trend included the sale of the freehold of a terrace House in 26 Colston Road, Forest Gate, E7, which made £33,500 — £8,500 above its reserve. Keen bidding for the freehold of a vacant two-bedroom house at 28 Holt Road, Silvertown, E16, pushed the final price to £36,000 from a £20,000 initial bid.
A freehold pair of self-contained flats at 69-71 Dawlish Road, Leyton, E10, went £5,250 above their reserve to sell for £32,250. The ground-floor flat is vacant, but the upper one is held on a 99-year lease, dating from 1980, at a ground rent of £50 pa, increasing by £50 every 33 years.
