The reality behind “Homes under the hammer”

A picture to represent Buying at Property Auctions

Hey folks. This post may seem a bit out of place on a website design business blog – but I like to share entrepreneurship stories, business news and general things that might interest our audience. Today, we’re talking property…

Part of my personal investment strategy is to diversify my earnings across a range of different asset types. I dabble with stocks, bonds, cryptocurrency, peer-to-peer lending and many others. For me, it’s not just about ‘earning money on my money’, it’s also a fun game to play. Sometimes I will invest as little as £50 per month, but I always try and put something in. I enjoy figuring this way and that, how I can get the best return on my investment. (I will be talking more about my investment strategy in future articles). My favourite asset class however, has and always will be; property.

Recently, I decided to look into auction property. I’ve never been to an auction or bought from one – but shows like Homes Under The Hammer make it look appealing. I have bought property in the past, so I thought I’d do some research to see the differences. The results make for interesting reading…

Auction Statistics

The following figures have been rounded. We analysed 135 auction properties from across the UK and a variety of types (flats, houses, land, leasehold, freehold). We tried to get a good spread and a fair representation of the market.

Price

The average auction property sold for 26% above the listing price. This means that if you are looking for a bargain, don’t forget that you are unlikely to get the property at the listed price.

Unsold Properties

37% of the properties we looked at, didn’t sell. For various reasons, including not meeting the minimum price, being withdrawn or simply no interest. This may represent an opportunity to get something when others don’t want the risk, or it may simply mean that a lot of the property stock at auctions is junk.

Price for 2 Bedrooms

The average sold price for a 2 bedroom property at auction was £180,762

Time on Lease Left

The average time left on a lease was 207 years. This stat isn’t particularly helpful unless you look at the data itself. Some properties had around 900 – 999 years left whilst many others were less than 100. General wisdom is that you should not let a lease get to less than 75 years.


These were just some of the interesting stats I found. If anyone is interested in more information, just drop me an email: contact@webwise.media. I plan on writing more about investing and some of the lessons I’ve learnt so subscribe to stay up-to-date.

If this is your first time on this blog, say hi!

Web Wise Media is a website design and marketing company based in London and the South West (Devon) of England.

Thanks for reading

– Dan Wiseman, Founder


Disclaimer: We do not take responsibility for any inaccuracies in this data and be aware that errors may be present. Please do not use this data for anything serious and always seek professional advice before getting involved in any investment.

 

 


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