London Property Finder

We have repeatedly advised that the Autumn property auctions will be indicative of things to come for the property market and Savill’s residential auction held mixed blessings yesterday.  Taking place the day after Lehmans went down and amid news of the Lloyds HBOS takeover, the timing wasn’t great.

Lots on offer were largely valued at less than £200,000 – prime first time buyer or amateur investor stock, with a smattering of houses in the £300K – £500K bracket and only one property with a guide price over half a million.

Starting at the top, 10 Primrose Hill Studios with a guide of £700 grand didn’t make it’s reserve at £750K.  Previously on the market with Behr & Butchoff at £865K, despite a great location in the heart of Primrose Hill, these largely one-floor 2 bedroom houses have a limited market, particularly given the price-tag.  The price per square foot looks a little toppy given it’s at auction and there is work to do.  For artists, disabled people in need of a carer or down-sizers, these little houses make good homes and there is a deal to be done here.

One of the great bargains of the day was lot 75, 44 Holden Street Battersea which sold for £330K, 10% over the guide and £200,000 less than 50 and 62 sold for during the last 12 months.  Presumably it needs gutting and is at least one bedroom smaller, but this looks like 2002 prices: previous Clients know we have been saying these areas have been over-priced for some time but at this price, it was good value.

We also picked out Grafton Road, Bedford, a huge house, again needing gutting but for a commuter needing space and in want of a project, it offered an affordable foothold at £130K.  Numbers 6, 31, 32 and 38 have all sold for over £200K in the last 3 years.

Musings of a London Property Finder

Professional investors are still spending: a ground rent investment in Kensington sold for £76,000 – it would have been less than half that at the beginning of the noughties.

A third of the properties didn’t sell; mostly one bedroom flats or houses in second-rate areas.  So here are the learning points:

• Investors are still buying land, development sites and ground rents
• First time buyers should take advantage of the slow market if they can: buying post-auction means you are in a very strong position and there is a range of stock under the new minimum stamp duty threshold
• Keenly priced property in good central locations is still selling
• 1 bedroom flats and property in second rate locations is sticking
• Most homes were priced or sold c. 20% below current market value or with only a small discount, given the work required  This is what you would expect in a healthy market although there were some excellent bargains 
• Hard nosed investors will want to see further price falls before they are tempted to relax the purse strings

Contact the London Property Finder for sound advice

Technorati Tags: Auction prices, Bargain prices, Buying tips, Ground rents, London auction, London Property Finder

Tags: Auction prices, Bargain prices, Buying tips, Ground rents, London auction, London Property Finder