Northern exposure gives Cambridge a lift
Infrastructure projects have a direct and tangible effect on the property auction and investor market. We have seen this particularly in Cambridge since the Cambridge North station was granted planning permission in December 2013.
The station is playing an important regeneration role when it comes to residential and commercial markets. The maelstrom which has surrounded its opening has led to a combination of property owners looking to cash in on their increasingly valuable assets and buyers looking to snap up bargains at auction which are guaranteed to generate stronger capital growth than other areas of the region.
The first example Cheffins saw of this at our auction was a mixed-use property sold back in 2014 on Milton Road in north Cambridge. It sold for £390,000 off a £250,000 guide price after attracting more than 48 interested parties and this was illustrative of how investors saw the potential for refurbishment opportunities in this new area of the city.
As Cambridge North opens up areas of the city which have been overlooked, such as Chesterton, Kings Hedges and Orchard Park, we are seeing growth in housing prices, commercial rental values and improvements to local services. The smart investors are pouring their money into this location as the opportunities for growth are substantial.
Last year we sold another mixed-use property on Chesterton Road, needing full refurbishment. It included two shops, an office, a storage room and a one-bedroom flat on the first floor. It generated bids from 30 interested parties, and sold for £484,000. This was almost 50% over its guide price of £325,000. Chesterton Road is a key hotspot for investors in residential or retail property, as a number of high street chains are expected to come to the area when Cambridge North becomes fully operational. We are expecting to see more stock come to auction in this area over the course of 2017 as property owners look to cash in on the rise in values.
The boom in the Cambridge market has been a talking point for more than two years now, reporting some of the highest price growth in the country for all types of property, and Cambridge’s increased accessibility due to Cambridge North is set to make this continue. This has had a knock-on effect on surrounding smaller towns which are now seeing an increase in people working in Cambridge but who have been priced out of the city market, just has been seen in the areas surrounding London.
These people are bringing with them a demand for improved retail and services, and are having an effect on property values across the board. For example, Biggleswade is now getting attention due to its low prices and guaranteed yields as it becomes both a Cambridge and London commuter hotspot.
We recently sold a mixed-use building in Biggleswade which achieved just over £1m against a guide of £900,000 and was purchased by a local investor who could see the potential of the town, and the outward ripple of city prices. This lot offered a solid investment and generated an annual income of £50,000 from established tenants, while also offering development gain and strong capital growth as the town continues to improve.
The mid-Anglia region is seeing a number of infrastructure projects at the moment, including improvement works to the A14 and the creation of the Ely Bypass, all of which are affecting commercial values and the popularity of lots at auction. For example, we recently sold a 12-acre landfill site in Godmanchester which had full planning for reinstatement into a mineral extraction site. This was soon snapped up, partly due to its proximity to the works on the neighbouring A14. It sold for £600,000 after competitive bidding from a number of parties.
As this inward investment continues in our region, we expect to see higher numbers of lots coming to auction and increasing competition for these, as the area comes under the spotlight of investors and developers on a national and international scale.
Ian Kitson, director, Cheffins Property Auctions
Cambridge lot performance at Cheffins auctions 2016-17
| March 2016 |
Guide price |
Achieved price |
| Shop with £16,000 pa rent, Wisbech, Cambs |
£150,000 |
£161,000 |
| Police station with consent for 2 houses, Papworth Everard |
£250,000 |
£268,000 |
| 3-bedroom house needing full refurb, Cambridge |
£400,000 |
£450,000 |
| June 2016 |
Guide price |
Achieved price |
| Industrial unit/offices, Linton, Cambs |
£525,000 |
£500,000 |
| Commercial/residential investment, Cambridge city centre |
£450,000 |
£608,000 |
| September 2016 |
Guide price |
Achieved price |
| Landfill site with planning for restoration of mineral extraction, Godmanchester, Cambridge |
£600,000 |
£600,000 |
| Former Methodist chapel with consent for conversion and separate house, Exning, Suffolk |
£325,000 |
£342,000 |
| Shop, office and residential investment, Chesterton Road, Cambridge |
£325,000 |
£484,000 |
| December 2016 |
Guide price |
Achieved price |
| 0.2 acres with consent for 2 detached homes, Great Shelford, Cambs |
£400,000 |
£419,000 |
| Shop with £11,000 pa rent, Fulbourn, Cambs |
£175,000 |
£205,000 |
| March 2017 |
Guide price |
Achieved price |
| House on 0.79 acres in need of full renovation, Ravendale, The Cotes, Soham, Cambs |
£160,000 |
£242,000 |
| Restaurant with £19,500 rent pa and 6-bedroom flat above, Ramsey, Cambs |
£140,000 |
£208,000 |
| Shop with planning for 3 flats, Biggleswade, Beds |
£900,000 |
£1,055,000 |
| 3 bed house in need of full refurb, Buckden, Cambs |
£295,000 |
£364,000 |
| 4 bed terrace house, Cambridge |
£390,000 |
£430,000 |
Infrastructure projects have a direct and tangible effect on the property auction and investor market. We have seen this particularly in Cambridge since the Cambridge North station was granted planning permission in December 2013.
The station is playing an important regeneration role when it comes to residential and commercial markets. The maelstrom which has surrounded its opening has led to a combination of property owners looking to cash in on their increasingly valuable assets and buyers looking to snap up bargains at auction which are guaranteed to generate stronger capital growth than other areas of the region.
The first example Cheffins saw of this at our auction was a mixed-use property sold back in 2014 on Milton Road in north Cambridge. It sold for £390,000 off a £250,000 guide price after attracting more than 48 interested parties and this was illustrative of how investors saw the potential for refurbishment opportunities in this new area of the city.
As Cambridge North opens up areas of the city which have been overlooked, such as Chesterton, Kings Hedges and Orchard Park, we are seeing growth in housing prices, commercial rental values and improvements to local services. The smart investors are pouring their money into this location as the opportunities for growth are substantial.
Last year we sold another mixed-use property on Chesterton Road, needing full refurbishment. It included two shops, an office, a storage room and a one-bedroom flat on the first floor. It generated bids from 30 interested parties, and sold for £484,000. This was almost 50% over its guide price of £325,000. Chesterton Road is a key hotspot for investors in residential or retail property, as a number of high street chains are expected to come to the area when Cambridge North becomes fully operational. We are expecting to see more stock come to auction in this area over the course of 2017 as property owners look to cash in on the rise in values.
The boom in the Cambridge market has been a talking point for more than two years now, reporting some of the highest price growth in the country for all types of property, and Cambridge’s increased accessibility due to Cambridge North is set to make this continue. This has had a knock-on effect on surrounding smaller towns which are now seeing an increase in people working in Cambridge but who have been priced out of the city market, just has been seen in the areas surrounding London.
These people are bringing with them a demand for improved retail and services, and are having an effect on property values across the board. For example, Biggleswade is now getting attention due to its low prices and guaranteed yields as it becomes both a Cambridge and London commuter hotspot.
We recently sold a mixed-use building in Biggleswade which achieved just over £1m against a guide of £900,000 and was purchased by a local investor who could see the potential of the town, and the outward ripple of city prices. This lot offered a solid investment and generated an annual income of £50,000 from established tenants, while also offering development gain and strong capital growth as the town continues to improve.
The mid-Anglia region is seeing a number of infrastructure projects at the moment, including improvement works to the A14 and the creation of the Ely Bypass, all of which are affecting commercial values and the popularity of lots at auction. For example, we recently sold a 12-acre landfill site in Godmanchester which had full planning for reinstatement into a mineral extraction site. This was soon snapped up, partly due to its proximity to the works on the neighbouring A14. It sold for £600,000 after competitive bidding from a number of parties.
As this inward investment continues in our region, we expect to see higher numbers of lots coming to auction and increasing competition for these, as the area comes under the spotlight of investors and developers on a national and international scale.
Ian Kitson, director, Cheffins Property Auctions
Cambridge lot performance at Cheffins auctions 2016-17
March 2016
Guide price
Achieved price
Shop with £16,000 pa rent, Wisbech, Cambs
£150,000
£161,000
Police station with consent for 2 houses, Papworth Everard
£250,000
£268,000
3-bedroom house needing full refurb, Cambridge
£400,000
£450,000
June 2016
Guide price
Achieved price
Industrial unit/offices, Linton, Cambs
£525,000
£500,000
Commercial/residential investment, Cambridge city centre
£450,000
£608,000
September 2016
Guide price
Achieved price
Landfill site with planning for restoration of mineral extraction, Godmanchester, Cambridge
£600,000
£600,000
Former Methodist chapel with consent for conversion and separate house, Exning, Suffolk
£325,000
£342,000
Shop, office and residential investment, Chesterton Road, Cambridge
£325,000
£484,000
December 2016
Guide price
Achieved price
0.2 acres with consent for 2 detached homes, Great Shelford, Cambs
£400,000
£419,000
Shop with £11,000 pa rent, Fulbourn, Cambs
£175,000
£205,000
March 2017
Guide price
Achieved price
House on 0.79 acres in need of full renovation, Ravendale, The Cotes, Soham, Cambs
£160,000
£242,000
Restaurant with £19,500 rent pa and 6-bedroom flat above, Ramsey, Cambs
£140,000
£208,000
Shop with planning for 3 flats, Biggleswade, Beds
£900,000
£1,055,000
3 bed house in need of full refurb, Buckden, Cambs
£295,000
£364,000
4 bed terrace house, Cambridge
£390,000
£430,000
