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£46.5 million at Allsop Auction

publication date: Jul 3, 2009
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AllsopA happy two day auction secured sales of £46.5m sale at Allsop’s June auction in London. 52 regulated tenancy, 28 assured shorthold and 5 assured investments as well as 46 ground rent investments.

Allsop partner and auctioneer, Gary Murphy commented, “This was the best selection of income producing stock available to the private investor in one sale for many years. Notable was the concentration of 52 regulated investments, which established an average yield of 3.5 per cent from 45 sales (86 per cent). This market is extremely sensitive to buyer perceptions of capital growth. A year ago, when house prices were in obvious decline, investors in the regulated market sat on their hands. This result is a clear indication that confidence has been restored. In addition, against the background of 0.5 per cent yield interest rates, yield has now become a more significant driver in this specialised market.”

Another sensitive sector, development land, also drew renewed interest demonstrating clear signs of recovery. Nine separate opportunities sold, some on behalf of BRB (Residuary) Ltd (formerly British Rail). For example, a 0.95 acre site in Maidstone with planning permission for five houses raised £430,000 for receivers from a guide of £125,000 to £150,000.

Allsop’s next residential auction sale will be held on 14 and 16 July at The Cumberland Hotel, Marble Arch, London, W1.