Welcome to our 6th Auction of 2025
We have already completed the first half of our auction sales for 2025 with 5 auctions now complete and with this sale, starting the second half of our programme of sales before a quick break from the rostrum in August.
The first half of the year has been a relentless effort to list enough stock to satisfy the demand of buyers which remains strong with the capital value of our sales now standing at over £174 Million, up some 15% on the same period last year.
Many expected the changes in Stamp Duty Land Tax (SDLT) that took effect as of 1st April to suppress the market. Whilst in some areas, transaction volumes have reduced since then, the overall market remains positive, many locations continue to experience price growth above the national average and almost without exception, landlords continue to see rental growth delivering better yields on their investments, something that the market has not really experienced beyond average inflation for many years.
In many respects, affordability remains the only limiting factor and this appears to be linked closer to deposit levels rather than current interest rates. I remember when the Bank of England Base rate hit almost 15% averaged across 1989, it was a difficult time for borrowers and anyone involved in the property services industry, but lending continued and at that time, most mortgage lenders offered rates above the BoE rate. Since the end of 2009 and until 2023 the BoE rate at the end of each year has tracked below 1% with some ultra-low rates during the Covid Pandemic period. Some would say this was unsustainable, created a “false” market and in some respects, was one of the most significant factors in fuelling house price inflation during those years. What has changed however is the number of lenders offering products today below the BoE rate, something that we have not previously experienced to any material degree. So, whilst the BoE rate is 4.25% a property buyer with a reasonable deposit can access rates comfortably below 4% and, dependent on circumstances, spread the repayment term over as much as 40 years.
Buying and owning a property is tough, it does potentially mean a bit of sacrifice and cutting back on a few luxuries but, comes with huge reward. Paying rent over a term gives you somewhere to live but no end reward, property ownership over a medium to longer term will give you that reward and, unless somebody in government makes, in my view, a very stupid decision, all the capital gains you make on your primary residence are tax free. Look at it this way, if you had come to our auction and purchased a property 20 years ago at the then national average house price you would have paid over £100,000 less for that house then than you would have to pay now. Yes, you would have had mortgage payments but surely better than getting no return by paying rent and, you wouldn’t have made over £100,000 tax free just from living in your asset.
I appreciate this may be rather simplistic approach but worthy of consideration as you page through the 340 or so lots in this sale. And, whilst there are some great deals and even dare I say bargains to be had where value can be added through modernisation/updating and then either selling on, or renting out, perhaps another measure might not be the immediate return but, the longer terms gains that could be available through holding assets bought at our auction on 29th July for just a little longer. It could be that when interest rates drop further, your purchase at the auction could give you an even better profit making opportunity earlier than you might expect!
Whatever your buying motivation, my auction team here at Barnard Marcus and our regional centres throughout the UK are here to help with all your enquiries in the lead up to the sale. On the day, don’t leave your bid to the chance of a phone or internet link, come along to the auction. It’s great fun, an electric atmosphere, and the only way you will ever really experience the excitement of a property auction first hand, in fact, we are the only national auctioneers that still sell in a live venue with bidders attending.
We look forward to seeing you at the auction on Tuesday 29th July , the sale starts promptly at 9.00am and, we wish you the best of luck with your bidding!
