A mixture of commercial and residential lots that sold well over their guide prices helped Strettons to raise £11.7m at its latest auction.
Thirty-four of the 45 lots on offer were sold – a 76% success rate. These included a terraced house in Stoke Newington, N16, arranged as two two-bedroom flats, which went for £665,000 against a guide of £450,000 to £500,000. With rental income of £10,946 pa, this represents a 1.65% gross yield.
A four-room terraced house requiring full refurbishment in Hackney Wick, E9, guided at £300,000 to £325,000, was sold on behalf of Hackney council for £439,000.
In Hoxton, N1, a pub with a basement and separate access to five flats, together with a roof mast, was sold for £1.3m, providing a gross 5.92% yield.
However, two large industrial units failed to sell despite attracting high bids. A 51,200 sq ft warehouse in Smethwick, West Midlands, with a rental income of £325,000 pa and 25 years left on the lease, saw bids stop at £2m, £500,000 short of the guide price. The other, a 20,120 sq ft warehouse in Slough, Berkshire, had the same income and lease terms but was guided at £2.25m. The last bid was £2.15m.
The amount raised beats Strettons’ last two auctions but is less than the top 2015 sale so far, which was held in March and brought in just over £12m.
Director and auctioneer Philip Waterfield said: “The continued demand for property, particularly in London and the Home Counties, shows no signs of slowing down. This is influenced by the general shortage of properties coming to the market due to people preferring to keep their money in bricks and mortar.
“This is restricting the supply of properties available, which is pushing up prices in many areas of the UK, not just London.”
