Allsop, the UK’s leading property auction house, reported impressive results this month, raising £87.8 million from separate commercial and residential auctions over two days. These auctions, held amid ongoing economic pressures, demonstrated that property investors remain committed to the market. George Walker, partner and commercial auctioneer at Allsop, remarked on the outcome: “Buyers responded well…a clear sign they see the market improving from here.”
The commercial auction brought in nearly £51 million from the sale of 63 lots, achieving an 80% success rate. This sale boosted the year’s total for commercial auctions to £413 million, with 526 lots sold and 119 fetching over £1 million. Allsop’s residential auction raised an additional £36.8 million, with 82 lots sold and eight properties exceeding the £1 million mark.
Unique properties drive demand
Among the standout sales was a unique collection of 22 freehold houses and two mixed-use buildings in Gloucestershire, which sold for £2.5 million, far above its £1.575 million guide price. This high-value transaction highlighted investor interest in rare, high-quality assets.
Walker shared insights into the investor response, noting that “the then-pending government budget announcement cast a cloud over the market, but on the day buyers responded well.” He observed that several familiar investors who had been absent in recent years returned, likely encouraged by the Bank of England’s adjustments to interest rates. However, he cautioned that while rates are easing, the budget introduces fresh inflationary pressures. Allsop plans one more commercial auction this year, scheduled for 11 December.
Acuitus auction sees high turnout for commercial ground rents
Meanwhile, Acuitus’s recent auction highlighted a surge in demand for commercial ground rents and London supermarket investments, raising £13.55 million at a 95% success rate. The auction drew 120 registered bidders, including seasoned ground rent buyers, showcasing the high demand for assets in well-positioned urban locations. Jon Skerry of Acuitus commented on the high interest, stating: “The sale of these assets offered occupiers and experienced investors a once-in-a-lifetime opportunity to purchase the freeholds of these valuable sites.”
Acuitus has announced its final broadcast auction of the year for 12 December, with instructions currently open for potential sellers.
Reflecting on a resilient year for property investment
These latest auction figures bring Allsop’s total raised for the year to £977.8 million, with £413 million from commercial sales and £564.8 million in residential properties. Despite a challenging economic environment, both Allsop and Acuitus saw strong bidding activity, indicating investor confidence in the UK property market’s stability and potential.
