'˜Outstanding results and fierce competition' post Brexit
We're more than halfway through 2016 - and a very positive year it has been for us so far.
The success rate in our industry is currently 73.7%, according to Essential Information Group (EIG) and our first five auctions of the year recorded 93%, giving us our strongest ever run of sales.
Our sixth auction, however, took place after the EU referendum and as a result of ‘Brexit’ we went into the auction hall at Sheffield United’s Platinum Suite with a degree of apprehension.
But the July auction was very much business as usual. It was very positive, with some outstanding individual results and fierce competition
Forty-two lots went under the hammer, with 36 sold and going for a total of £3.9million – a success rate of 86%, plus even half the unsold lots are currently under offer, too.
In fact, our sixth auction of the year means, in total, 169 lots have sold for £16.45 million to date, giving us an overall success rate of 90%.
The Old Brewery Yard at Worksop had a guide price of £150,000 but went for £372,000 - more than double. It needs investment but the commercial units produce £34,515 a year, and more than 60 legal packs were downloaded prior to the auction so there was definitely keen interest before the sale because of the potential for rental growth.
When the market has tightened in the past, we have tended to find people erring towards bricks and mortar. Post Brexit interest rates are incredibly low and alternative forms of investment are not performing as well so the sale of this lot is a very good example of people choosing income producing properties in times of low yields elsewhere.
Other high-performing lots at the auction included an unmodernised semi-detached house on Abbeyfield Road in Pitsmoor in need of complete renovation house. Listed at a guide price of £60-70,000, the property sold for £90,000.
Regardless of the EU referendum result, Sheffield’s two universities are not going anywhere and there is still very clearly an appetite for shared student housing as demonstrated by the sale of a stone-built semi-detached house on Northumberland Road in Broomhill. A long-established student property, it is already let for the 2016/2017 academic year and produces £19,500 rental a year.
Despite a guide price of £295,000 it sold for nearly £100,000 more at £394,000 which shows the strong demand for income producing properties and reaffirms our view that, in terms of accommodation, Sheffield is continuing on course to become the world’s biggest student village.