September 20th, 2017. Luke Egan
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 Luke Egan
September 20th, 2017
Luke heads up our specialist property finance team where his focus is to drive our transactions valued between £100k and £5m.
Luke and his team manage enquiries from initial enquiry through to redemption. Luke also sits on the internal credit committee with Ben and Tom.
Luke joined Pure back in 2014 following a successful role in the Barclays property finance team that lasted over 8 years.See more articles by Luke