Property auction news
Welcome to Surelock Network Auction’s March Newsletter!
The past few weeks have contained lots of interesting news and developments that could have a huge impact on the UK economy, housing market and auction behaviour.
The possibility of Britain leaving the European Union appears to be growing
London Mayor Boris Johnson has joined the Brexit discussion by announcing he favours an out vote when the in-out European Union referendum vote comes round in a few short months. While this puts him in direct opposition to Prime Minister David Cameron our thoughts turn to the potential impact on the housing and property auction markets.
According to a report by KPMG 66% of real estate experts believed that Britain leaving the EU would have a negative impact on inbound cross-border investment. Other property market experts, including estate agency Winkworth’s CEO Dominic Agace, have said while it’s hard to predict what will happen, the uncertainty ahead of the vote is likely to result in a property market slowdown.
If the UK does exit the EU, there is a possibility that investment into UK property could slow which may lead to a slowdown in house price growth. In turn that could mean property auctions might turn out more bargains with fewer investors bidding for property. Of course this is just speculation – we must now wait and see what happens when the UK votes on its EU future on June 23rd.
The BOE downgrades UK growth
In its latest Quarterly Inflation Report, Bank of England Governor Mark Carney announced the central bank had downgraded its forecast for UK growth this year from 2.5% to 2.2%. The reason for the downgrade was the ‘turbulent’ global economy and financial markets.
As growth isn’t expected to recover any time soon UK interest rates look set to remain at 0.5% for the rest of 2016 at the very least. That’s good news for mortgages and lending rates but also signals that earnings growth may not surpass 3% for some time yet.
With rates remaining low and economic growth expected to falter, property auctions could become increasingly popular as investors and home-movers look for a bargain to take advantage of low rates while not wanting to pay high street estate agency values. We at Surelock Network Auction certainly hope this is the case!
January proves a disappointing month for property auctions
The latest property auction data from the Essential Information Group showed a drop in appetite for selling and buying at auction in January across the UK. While the difference in the number of properties offered for sale in the first month of 2016 was only 16 compared with a year earlier, the percentage of lots sold at 72% was considerably down from December’s 77.7%.
Looking back at previous figures, January is rarely a bumper month for auctions and given there has been so much going on to occupy potential investors elsewhere, perhaps it’s no real surprise that this year was no different.
Going forward we’re hoping that – as stated above – potential investors and buyers return to the auction room with thoughts of grabbing a bargain in their head and a good bid limit to go with it. Indeed, 2016 has started well for Surelock Network Auction as our February and March auctions attracted our biggest ever catalogue of over 120 lots, a trend we’d like to see continuing throughout the year!
We hope you enjoyed Surelock Network Auctions’ thoughts on the issues discussed in our March newsletter. If you want to keep up-to-date with Surelock’s auction dates visit our website and to keep abreast of our news and views, take a look at the blog section.
We welcome any comments on the points we have mentioned, or any questions at all, even about a property you are interested in that isn’t listed at one of our auctions. Additionally, if you want to share your own views on another topic, please contact us. You can get in touch by responding to this email, tweeting us @KhalidAuctions or commenting on the blog section of the Surelock Network Auctions website.