Market Leading Auction House Raises £28m with 81% Success
Allsop’s success in the online auction world continued last week, as the firm’s residential auction team held its second sale since lockdown. At the time of writing, £28m has been raised from the 28 May catalogue. 81% of all lots offered have been successfully sold, although the firm reports that post sale transactions are proceeding at a pace. This brings the total raised by Allsop under the virtual hammer to £140m since it moved from the ballroom to its exclusively online offering.
“Our transition from in room sales has been remarkably smooth” said auctioneer Gary Murphy. “This second sale was particularly well received. With 14 lots sold prior and over 1200 pre-registered bidders for the 160 lots to be offered on the day, the auction was looking extremely promising. Bidding opened at 8.00am and closed at 9.30 that evening. Some 6000 online bids were made in total during the day.”
Unable to offer group viewings due to safety restrictions, Allsop arranged virtual tours for the majority of the 88 vacant properties offered. Murphy said “Bidders are very comfortable with this ‘new normal’. Despite the lack of access, competition was exceptionally keen. Prices are holding up well with little perceptible change now since pre-lockdown”.
The largest lot of the day was Troy House near Monmouth, Wales. This Grade II* Listed 17th century mansion extends to almost 44,000 sq ft and sits in over six acres. Formerly used as a school, the building is in poor condition. It was offered against a guide price range of £200,000 to £250,000 and sold after 560 bids for £1.356m. Partner and auctioneer, Richard Adamson commented “A building of this historical importance, and in need of so much work, will always be very hard to price. Auction was the perfect way to maximise value. Potential alternative uses ranged from residential apartments to a boutique hotel. Competition between different bidder categories was intense.”
Assured shorthold tenancy investments proved resilient. 15 were sold showing an average yield of 6.99%. Long term ground rents, always popular in times of uncertainty, remained steady at 4.76% for 80+ years life of income.
