Midlands auctioneer Graham Penny is expanding to Leicester as the firm seeks to provide a “credible auction” offering for the growing East Midlands market and lure stock away from the London sale rooms.
The firm already runs seven auctions a year in Derby, where it is long established, and Nottingham, which it opened 16 months ago. It will hold its first Leicester sale on 24 October, followed by an 11 December sale. It has seven auctions planned for 2014. All sales will be held at King Power Stadium.
The firm, which will employ four full-time and two part-time staff, is currently finalising office space in central Leicester.
The expansion follows requests from existing clients who sell their Leicester property through the firm’s operations in Derby and Nottingham, said auctioneer Graham Penny.
“I am very positive about it because the auction market is doing well, particularly in the past 24 months. There is a lot of stock now being sold through auction that has struggled to sell by private treaty,” said Penny.
He confirmed that the firm had plans for further expansion outside the East Midlands, but would not elaborate on the details.
There are currently three other firms operating in Leicester: Auction House Leicestershire, Shonki Bros and Kal Sangra Shonki Bros. The major London auction houses also sell Leicester stock.
“There is a lot of Leicester area property that is sold in London,” said Penny. “I believe that is partly down to the fact that some clients do not think there are credible auction houses in Leicester, so we are hoping to break into that.
“And on the back of Leicester stock being sold in London, I don’t think anyone can honestly say that they are achieving their best prices sold down there.”
Penny said the firm would focus on private vendor stock as opposed to repossessions.
Roger Lake, founding director of the Auction House network, said competition was good for the Leicester market. “The big benefit is that auctions will become better understood and a more effective alternative to private treaty sales.”
He rejected the claim that existing Leicester auction houses were viewed as not credible. But he agreed that the best prices would be achieved by local auctioneers.
“Any instructions that are outside the South East will always sell for more money locally than they will from London because of the benefit of marketing the property to locals,” he said.
Gavinda Sangra, co-owner of Shonki Bros, said the Leicester property sold at London sales came mainly from asset managers and receivers. “That stock tends to come through tie-ins with the banks, and it is harder for us, as a smaller operation, to get that business.”
samantha.baden@estatesgazette.com
