Revenues rise to £13m as covenant, quality and price hit the right note with buyers at Andrews and Robertson’s September auction.Property buyers searching for value and high yielding stock or lots with potential to add value packed into the Grand Connaught Rooms where Andrews and Robertson held its 22 September auction.
With uncertainty over the wider economy heightening and volatility in the stock market continuing, bidders looked for stability in bricks and mortar with many investors chasing good commercial covenants, residential projects in quality locations including those with a London postcode, while others bought carefully looking for revenue and sourcing high yielding stock, or lots with potential to add value.
Almost £12m was raised on the day and investor demand for stock continued pushing success rates to 60% and receipts to almost£13m.Some of the strongest individual results where prices significantly exceeded guides occurred on behalf of motivated sellers: they included a number receiverships and mortgagee in possessions as well as lots offered on behalf of private vendors seeking a swift and secure transaction.
Robin Cripp, Senior Auctioneer, said: “The market continues to face challenges, but having said this there is a heartbeat there and money to spend as the sale of a portfolio of 20 new build houses in Blackburn producing £118,500pa which sold for the LPA receivers at its guide price of £1.3m demonstrates.
“However it is fair to say that buyers are being selective and remain extremely price sensitive. They are looking for a secure home for their money, often they prefer to buy in an area which they know well while others are willing to look beyond their region and London and the South-East remains a favourite area for investment, we are also seeing a number of overseas buyers who consider the UK to be a secure base as uncertainty over the Euro-zone continues to grow.”