A number of buy-to-let investors continue to acquire properties under the hammer despite recent tax hikes and significant political uncertainty, but the majority are quite sensibly targeting ‘long-term’ investments, according to the head of the residential auction department at Allsop.
Many who acquire property at auction are buy-to-let investors, but pricing in the market is highly sensitive, with those vendors willing to adjust their guide prices to reflect current market conditions seeing greater interest and competition from buyers in the room, according to Gary Murphy, partner and auctioneer at Allsop.
Allsop raised more than £38m and achieved a 77% success rate at its most recent residential sale three weeks ago.
On-going political uncertainty, and concerns of a forthcoming interest rate hike, saw potential buyers express caution, with a growing number of bidders wishing to negotiate on unsold stock.
Murphy said: “We are seeing the market correct in front of our eyes. Well located stock at sensible reserves is drawing competition and producing good results. But deepening caution across the market has resulted in many potential bidders sitting on their hands and waiting to negotiate on unsold stock.
“As is usual in times of short-term uncertainty, long term investments fared well. Regulated tenancies sold comfortably and demand for freehold ground rents was sustained.”