SDL Property Auctions on Buyer Decision Making, Commercial Sales, Cash Buyers and More…

We put some questions to Andrew Parker, managing director and auctioneer at SDL Property Auctions – specialists in selling a broad range of residential and commercial properties across the UK, for both private individuals and corporate clients.

What insights can you offer regarding trends observed by SDL Property Auctions within the residential and commercial auction sectors during the first quarter of 2024?

We’ve seen an increase in the number of registered bidders on both residential and commercial lots. With some certainty that the next change to the base rate is going to be in the right direction, appears to be giving people comfort in their decision making.

Could you highlight notable sales that have gone under the hammer this year?

As always, residential lots that offer potential for improvement have been incredibly popular such as 171 Winchester Road in Wolverhampton, a three bedroomed semi-detached house with a guide price of £99,000+ (plus fees) and sold for £170,000.

In addition to this, we’ve seen an increase in the number of lots from local authorities such as the Long Close Office Complex in Ripley, Derbyshire which was a vacant care facility with a guide price of £750,000+ (plus fees) which sold for £1,990,000.

Another local authority lot which exceeded expectations was the land opposite units 1 – 5 Thornleigh Trading Estate in Dudley which sold for an impressive £255,000 from a guide price of £15,000+ (plus fees).

What are your projections for the property auction market for the remainder of 2024 and moving into into 2025?

Whilst there is still an element of uncertainty, market sentiment continues to improve, and we anticipate that the auction market for 2024 and 2025 will remain buoyant with a varied range of properties coming to auction.

From your perspective, what are the primary risks and challenges currently impacting the auction sector in the medium term?

Continued economic instability naturally leads to a level of hesitancy amongst buyers. However, as an auction business, we can provide certainty in these uncertain times, particularly for those sellers who need to realise their assets now and cannot afford to wait.

What are your feelings regarding the commercial auction sector – particularly office and retail – this year?

Secondary retail will continue to be challenging. We believe office accommodation will continue to improve as employers look to encourage the workforce back to the office, such as Boots who have recently announced a 100% return to the office.

Have you observed any noticeable geographical patterns or trends in recent years?

The northwest continues to be incredibly buoyant, along with the west midlands.

Considering the transition to a higher interest rate environment, how has the auction sector and its buyer demographic adapted?

During a period of high interest rates, we have seen more cash purchases as those looking to secure funding may be discouraged by the cost of borrowing.

Where can our readers access further information about your auctions?

Our website – www.sdlauctions.co.uk – has lots of information about buying and selling by auction, including all our forthcoming auction dates, properties for sale, details on registering to bid and requesting a free auction valuation. Plus, we have a great Advice Hub offering support for anyone looking at auctions for the first time.