Pricing proved problematic at Savills’ residential auction after a minority of corporate clients held on to historic valuations, lowering results.
The sale at London’s Royal Garden Hotel in Kensington on Monday raised £17m after 63% of 98 lots offered sold.
Vendors included retired GP Judith Atkinson. The first-time auction seller’s former surgery with residential upper parts in Fulham’s Hurlingham Road sold for £318,000 off a guide price of £240,000.
Other strong performances included a house in Wood Green. With a guide of £295,000, it made £385,000 for vendor Battersea Dogs and Cats Home.
The largest lot, a pair of connecting semi-detached houses in Fulham Road with development potential, sold for the local authority for £2.25m off a guide of £1.75m.
Savills’ commercial auction results also fell at its Claridges sale on Monday.
The amount of lots offered dropped to 34 and more than one-third – 36% – were unsold. The sale raised £8m.
James Cannon, auctioneer, said a lack of liquidity was affecting transactions. He added: “Our end-of-year survey showed that 50% of banks were lending, but their criteria have changed.
“We don’t have the long-dated income with good covenants and banks that they seek. But our quality properties still sold well.”
Key performers included a short-term leasehold office investment near West Fareham, Hampshire. Let to Meggitt Properties until 2013, it produces £275,000 pa. It made £3.22m off a guide of £3m-£3.4m, an 8.1% yield.
