Private investors flock to commercial property at auction

A growing number of private investors, previously focussed on the buy-to-let market are now buying commercial property at auction. [caption id="attachment_863712" align="alignright" width="200"] To read these reports and much more in full, see Estates Gazette’s Property Auction buyers’ guide. Available on iTunes, Google Play and in WHSmith and other major newsagents from Saturday October 15[/caption] Allsop and Acuitus, the two largest commercial auction houses, both report evidence of a shift, in Estates Gazette’s new Property auction buyers’ guide, out this week. Acuitus research shows that private investors bought £3.6bn of commercial property in 2015, of which £745m, or just over 21%, was sold at auction. This is the highest volume sold to private investors at auction since 2006. • EG’s Auction Guide: Download your free guide here Richard Auterac, chairman and auctioneer, said evidence from the auction room and the firm’s private finance arm indicated a “shift towards commercial property on the part of some residential investors”. It comes as the government seeks to reduce investor appetite for residential, with stamp duty increased by a further 3% on second residential properties and tax relief on residential rental income to be phased out by spring 2017. Allsop partner and commercial auctioneer George Walker said his firm’s buyers’ questionnaire revealed a 20% rise since last year in buyers with up to £1m to invest. “Many of these, having already had success in the residential world, are looking to build a portfolio of commercial investments,” he said. Walker added that “the real draw must be the longevity of the income”.  Allsop partner and residential auctioneer Gary Murphy said tax changes were the biggest cause of concern to residential investors. But he added: “A combination of low interest rates, an ingrained affection for property in the UK’s psyche and a history of strong capital growth on residential investments means demand is still there.” Subscribers can click below to read the full articles Commercial prospects: lots to ponder Auctions: building a commercial portfolio Also in this issue Weird or wonderful, seven auction properties you have to check out. From nuclear bunkers to tidal mills Homes under the hammer: Presenter Martin Roberts on opening up the auction room and why he is banned from buying on the show Where to invest and what to buy: Whether it is £2m or £250k, five experts share their top picks A guide to the guide price: Essential Information Group’s David Sandeman explains what ‘guide price’ really means Addicted to the auction room: Three self-confessed addicts talk about why they keep going back to the auction room Beginner’s guide: The first time in the auction room can be daunting from finding properties, finance, to arriving at the auction – we show you how to bid with the best PRS: why you should enter cautiously and be prepared to play a long-term game Loan arrangers: how to get cash to invest You won it! Investors talk strategy and tax and financial experts offer their advice Gabby Logan: All About Property presenter talks about her passion for property • To send feedback, e-mail julia.cahill@estatesgazette.com or tweet @EGJuliaC or @estatesgazette