Flat owners – who have seen their property values suffer the most in recent years because of everything from the Covid race for space to concern over the leasehold system – are increasingly turning to auctions, according to Joe Darnell, of Foxtons Auctions.
One flat owner considering an auction sale is Alex, who has been trying to sell his one-bedroom leasehold apartment in Greenwich, south-east London, for almost three years.
Alex, who did not want to give his surname, has had two buyers pull out over that time.
“The selling price has got lower and lower – it’s gone down from nearly £400,000 three years ago to £265,000, which was what the latest buyer agreed to pay before we went through a four-month conveyancing process only for them to back out,” he says.
“I bought my flat for £232,000 in 2018 and may not get much more for it at auction – but at least I’ll get it sold.”
High-end homes under the hammer
An increasing number of expensive homes are going under the hammer, too.
Last year, Savills Auctions sold 46 residential lots for more than £1m and six for more than £3m. Richard Watson, of Knight Frank Auctions, says his team has recently sold several multimillion-pound properties in central London.
Again, many of these sellers are turning to auctions after conventional sales have failed.
Rachelle Cramp, of Hamptons estate agency in Haslemere, Surrey, recently sold a property at auction within weeks and over the reserve price after two failed purchase attempts stretched over 10 months.
“We’re seeing more clients turn to auction because it provides transparency, clear timelines and a much higher degree of commitment from buyers,” says Cramp. “Slowly, people are realising that auctions can be an extremely effective route for well‑presented, well‑priced homes.”
Exceeding expectations
The trade-off with an auction is often accepting a lower price in favour of speed. However, that is not always the case.
In March, Kirsty Webb helped her parents, Jeanette and Anthony, sell off two acres of grassland in Great Abington, Cambridgeshire.
