September 20th, 2017. Ben Lloyd
The State of Auction Finance in 2017
2016 was a tumultuous year for property purchases and investment and property auctions were affected as a result. How has 2017 so far compared? We take a look back over the last 18 months or so to find out.
Buying Property at Auction in 2016: A Reflection
From 1st April 2016, all purchases of additional properties (such as buy-to-let or holiday homes) incurred an additional 3% stamp duty land tax which for a short period stalled the industry as ‘flipping’ properties lost its shine slightly.
Then on June 23rd the UK voted to leave the European Union which caused uncertainty among buyers as the future of property prices was unknown.
Unsurprisingly, property auctions faltered slightly as a result and according to Essential Information Group, auction activity fell by around 10% on 2015.
Bidding on a House at Auction in 2017 and Beyond
Things have settled since the confusion of last summer. As the Essential Information Group’s (EIG) said back in June:
“The residential market saw a small increase in lots offered last month, up 1.5% to 2,317 lots, whilst lots sold fell by 0.6% to 1,684 lots. The rolling quarterly figures show minor fluctuations, but overall the sector’s recent results have been largely comparable to those recorded last year. […] Now the dust has settled one hopes that the market strengthens again through the second half of the year.”
With the introduction and growing popularity of online auctions, things could certainly strengthen further in coming months.
Traditional auctions where dozens of prospective buyers huddled in a room and lifted their hand to bid are now being replaced with internet alternatives which allow you to bid at a click of a button.
That means you can purchase a property online from the other side of the world without even changing out of your pyjamas.
Alongside pre-qualification checks which allow the arrangement of auction finance beforehand, monitoring prices, bidding and buying a house at auction is now easier than ever.
Considering Purchasing Property at Auction?
Whether you’re planning on buying in person, online, or are simply looking to learn more about property auction finance, our team of brokers can help. Call 02920 766 565 to see what you can lend.
Article By Ben Lloyd
September 20th, 2017
Ben is the Director and Co-Founder of the Pure Group and Managing Director of Pure Property Finance.
Following a career in Barclays, where Ben was in the real estate finance team for 8 years, he decided that the market needed a more forward-thinking type of commercial brokerage so founded Pure Commercial Finance (now Pure Property Finance), the first company within the Pure Group.
Ben has extensive experience across the real estate sector and has participated in over £2bn of real estate transactions during the course of his career.
Ben oversees the general strategy at Pure Group and works with the senior leadership team to drive the Group forward. Ben is also on the Executive Committee of FIBA.See more articles by Ben