News

Strettons cools off in July with 56% sale

News

Julia Cahill

17 July 2018

Auctions

Strettons’ July auction witnessed the same cooling of the market reported by other auction houses over recent weeks, selling 56% of its catalogue on the day.

The sale raised £6.5m, with a further £2m now under offer.

With uncertainty and caution running through the property market and the economy, there was mixed bidding, with some lots selling well and others, which would have appealed to investors 12 months ago, failing to reach reserve.

Auction director Philip Waterfield said: “It’s clear there has been a cooling of the market over recent months, as witnessed by the success rates of other auction houses. The reasons for this are well reported, but it’s our view, shared by several investors at our auction, that there are still good opportunities in the market, especially for those taking a long-term view on their investments.”

The highest price of the sale was for three flats in Walthamstow, north-east London, and an adjoining garage with planning for a house, which sold for £1.1m. An array of vacant freehold houses in Ilford, Highams Park, South Ockendon, Shepherds Bush and Streatham sold individually for between £295,000 and £500,000 or an average of £325,000.

A two-bedroom vacant flat in Kensington guided at £770,000-£790,000 sold for £789,500 and, in contrast, a two-bedroom flat in Leytonstone, let at £10,800 pa, sold for £121,000.

Commercial sales included a 620 sq ft vacant commercial unit in Isleworth guided at £190,000-£195,000 that sold for £191,000, and a small unit in Grantham that sold for £30,000.

A leasehold commercial investment in Leytonstone let on an inclusive rent of £61,000 pa sold for £522,000, a gross yield of 11.7%, against a guide of £360,000-£370,000.

In Dagenham, a conventional shop investment, let to William Hill with the residential upper parts let on an AST, and guided at £335,000, sold for £365,000, a gross yield of 6%.

Waterfield said: “In a continued atmosphere of Brexit negotiations, political and economic uncertainty, I believe recent success rates highlight the need for an adjustment in price aspirations in order to encourage greater buyer interest.”

The sale took place on 16 July at the Grand Connaught Rooms, WC1.

To send feedback, e-mail julia.cahill@egi.co.uk or tweet @egjuliac or @estatesgazette

A version of this article appeared in the 21 July 2018 print edition of EG with the headline “Strettons cools off in July with 56% sold”

Strettons’ July auction witnessed the same cooling of the market reported by other auction houses over recent weeks, selling 56% of its catalogue on the day. The sale raised £6.5m, with a further £2m now under offer. With uncertainty and caution running through the property market and the economy, there was mixed bidding, with some lots selling well and others, which would have appealed to investors 12 months ago, failing to reach reserve. Auction director Philip Waterfield said: “It’s clear there has been a cooling of the market over recent months, as witnessed by the success rates of other auction houses. The reasons for this are well reported, but it’s our view, shared by several investors at our auction, that there are still good opportunities in the market, especially for those taking a long-term view on their investments.” The highest price of the sale was for three flats in Walthamstow, north-east London, and an adjoining garage with planning for a house, which sold for £1.1m. An array of vacant freehold houses in Ilford, Highams Park, South Ockendon, Shepherds Bush and Streatham sold individually for between £295,000 and £500,000 or an average of £325,000. A two-bedroom vacant flat in Kensington guided at £770,000-£790,000 sold for £789,500 and, in contrast, a two-bedroom flat in Leytonstone, let at £10,800 pa, sold for £121,000. Commercial sales included a 620 sq ft vacant commercial unit in Isleworth guided at £190,000-£195,000 that sold for £191,000, and a small unit in Grantham that sold for £30,000. A leasehold commercial investment in Leytonstone let on an inclusive rent of £61,000 pa sold for £522,000, a gross yield of 11.7%, against a guide of £360,000-£370,000. In Dagenham, a conventional shop investment, let to William Hill with the residential upper parts let on an AST, and guided at £335,000, sold for £365,000, a gross yield of 6%. Waterfield said: “In a continued atmosphere of Brexit negotiations, political and economic uncertainty, I believe recent success rates highlight the need for an adjustment in price aspirations in order to encourage greater buyer interest.” The sale took place on 16 July at the Grand Connaught Rooms, WC1. To send feedback, e-mail julia.cahill@egi.co.uk or tweet @egjuliac or @estatesgazette A version of this article appeared in the 21 July 2018 print edition of EG with the headline “Strettons cools off in July with 56% sold”