"We expect auction sales to play a significant role for savvy investors"
Economically, it has been a tough time, with the first half of the year impacted by political uncertainty and mortgage rates that are holding steady rather than decreasing significantly. There have also been changes in taxation, including the cut to capital gains tax which came into effect in April this year.
Incoming changes include the Renters’ Rights Bill, predicted to become law by next spring, which contains the abolition of Section 21 ‘no fault’ evictions, amongst other measures such as removing fixed-term tenancies and a new mandatory Ombudsman for all landlords.
While all of this could be cause for some investors to reduce the size of their portfolios and release stock into the market, with this comes the opportunity for others to grow their portfolio, creating opportunity for investors ready for expansion. Jamie Cooke, Co-Founder of iamproperty is predicting that in times of market fluctuations, there are gains to be had and Auction is a way to capitalise on this quickly.
With less than a week left in September, there are still over 3,000 properties available via auction, according to listings on AuctionIQ.
Cooke said:
“Changes can bring challenges as well as opportunities and there will always be people who can buy up properties that are appearing on the market. Not only are there opportunities to snap up properties due to some landlords choosing to exit the market, but there is also predicted to be an influx of former student buy-to-lets as more students choose purpose-built accommodation.”
Similarly, Knight Frank, and the Universities and Colleges Admissions Service (UCAS) have also shared data from a survey of 70,000 students of which 65 per cent said that they would choose their institution based on the availability of suitable accommodation. Students also indicated that fast WiFi, 24-hour security, on-site laundrettes and well-being services such as gyms were high on the list of desirable amenities.
Jamie adds that Auction provides a great opportunity for investors to increase their portfolio. He said: “Auction’s core benefits of speed, security and transparency are appealing to investors who want to see their return on investment as soon as possible, whether as a buy-to-let, property flipping, or commercial property. We’re running a record number of auctions from now until the end of September, which is a great opportunity not just for investors, but agents, too. We expect auction sales to play a significant role for savvy investors with the ability to benefit from these specific circumstances, and agents who have this method of sale in their arsenal will also reap the rewards.”
