Scott Hendry is a Director of Auction Finance Limited, one of the UK's leading lenders in the property auction sector. Scott attends auctions up and down the country and has more than 20 years’ experience in the sector. Working with some of the UK’s largest auction houses and property developers, Auction Finance funds property deals by providing flexible, bridging loans.
How has Auction Finance evolved over the past 10 years?
Since we were established ten years ago, Auction Finance has grown enormously. We attend around 300 auctions every year and since 2004, we’ve provided a total of flexible and short term loans valued in excess of £150 million, enabling clients to purchase properties worth more than £320 million. We’re seeing an increased demand from people who want to buy at auction and as a result, in the first six months of this year, we upped our lending by over 135 per cent, compared to the same period last year. This growth has meant our team has grown significantly and there are now a number of us travelling to auctions across the country.
What makes you different to others in the market?
We can lend on properties that many other lenders wouldn’t be able to. This means properties that require a great deal of refurbishment but have excellent potential can be snapped up by developers. Crucially, we can act quickly and lending decisions can often be made in hours, either before, during or after an auction takes place. Our clients are therefore in a position to take advantage of the best deals in the auction room. We also stand out as we have extensive national coverage, working in partnership with auction houses across the UK to offer funding solutions.
What trends have you noticed in the property auction market over the past 12 months?
In the last few years property auctions have become increasingly popular. In fact, in July, over 4200 lots were offered across 194 auctions in the UK – an increase of 7.8 per cent on July 2013. Right across the UK, we’re seeing extremely busy auction rooms. My advice is to get there early if you’re planning to attend an auction!
What do you think is going to happen in the sector in the next few months?
That’s a good question as nobody really knows what will happen in the property sector in the future. Personally, I’m excited about the next few months and am confident we will continue to grow. The estate agents are predicting positive figures and auction room figures are likely to follow suit.
What do you love most about working in the property auction market?
I love the variety - you never know what’s going to come up next at an auction. It’s exciting to see a buyer’s plans for a property coming together and be involved in the process from the start. You’re constantly learning in this job, whether it’s about knotweed issues or the legalities of buying a particular property. I get a real thrill from being an integral part of clients’ business plans. You really become part of their team, working towards a common goal.
What do you think the key challenges for the market are going to be in the future?
The obvious one is interest rate rises. We don’t know when it’s going to happen but as a lender, we have to be prepared for this. The other factor to be aware of is a possible change in government next year, as this could pose challenges for the sector. You don’t know what changes to the property market could be introduced and we will have to react to these and inform our clients.
