19.01.12
THE rise in the popularity of auctions as a way of buying and selling houses has been one of the property stories of the past decade – and North Staffordshire is perfectly placed to capitalize on it.
Even in a down market auctions continue to attract investors who are keen to take their money out of stock and shares or pension funds and put it into bricks and mortar. Landlords renting out a house can expect to get a return of between six to eight per cent, better than just about any other investment at the moment, as well as having an asset which should appreciate over the long term.
Figures quoted this week on the trade website www.estateagenttoday.co.uk reveal that last month buyers spent £234 million at property auctions and of the 2,744 lots going under the hammer 1,996 sold, a conversion rate of almost 73 per cent and up on the same month a year before when 68 per cent of the lots were sold.
The cheap properties of North Staffordshire have been a magnet for inward investment from people living outside the area as well as local buyers. Nigel Dickin, a Partner at Butters John Bee which is holding one of its regular auctions at the Moat House hotel on January 30, said: “We get a lot of bidders from London, Bristol and other places where property is more expensive because they know they can get a lot more for their money here.
“People recognise that Stoke-on-Trent is a great investment area because prices will only go up. Things are improving here and several years from now the city and surrounding area will have a very different image.
’’Property is also widely seen as a good place for investment money at the moment. You get next to nothing from putting it into a bank but renting does bring a much better return.’’
And Mr Dickin said that auctions are no longer just for expert property dealers thanks in large part to the popularity of TV shows such as Homes under the Hammer and Changing Rooms which have persuaded many more people to buy and sell lots.
He said: “It is a confidence thing as much as anything and the TV coverage has shown people that so long as they do their preparation and don’t rush into a project then buying at auction is a great way to acquire property and a lot of ordinary people are doing just that as an investment.’’
As well as buying, auctions are also a good way for people to dispose of property. Mike Hancock, Associate Director at BJB, said: “People’s circumstances change and for whatever reason they need to sell quickly and the best way to do that is at auction.’’
He added: “People used to be a bit wary of auctions but now they are seen as a normal part of the market. We hold sales at the Moat House, Hunters Lodge in Crewe and Tillington Hall at Stafford and the rooms are packed every time.
“We would always advise people to come along and watch a sale first, to see what goes on, and to talk to us and others at the auction before entering one as a bidder. The whole thing is transparent, fair and efficient but people do need to prepare thoroughly.’’
The sale at the end of this month contains more than 80 residential, retail and commercial properties ranging from a Victorian guest house at Uttoxeter with a guide price of £250,000-plus to a mid-terrace at Tunstall for £20,000-plus.
Previous BJB sales have included churches, building plots, a North Sea trawler used as a restaurant and an ice rink in Hanley.
Mr Dickin said: “We are estate agents and auctioneers, the biggest in the West Midlands, and people might be surprised what we put under the hammer!’’
Ref:Sentinel Homes 19.01.12 john.swift@thesentinel.co.uk
