The national brand sold 1,830 lots last year from 2,232 offered – achieving an impressive 82% success rate and raising over £170 million (£170,587,000) in the process.

Auction House Founding Director Roger Lake said: “This is another set of superb statistics for Auction House. 2011 marked an impressive year of growth for regional auctions – achieved on the back of increased repossession instructions and a growing local appetite for the quick-sale solution that auction presents.

“Certainly more national instructions are now being sent to regional auctioneers and achieving higher prices as a result. Purchaser-demand has been high too – with full auction rooms and spirited bidding.”

The end of the year saw further success for Auction House, when the brand won gold and silver awards at the Estate Agent of The Year Awards in London – widely recognised as the benchmark for excellence throughout the estate agency industry.
Roger Lake added: “Our local auction room service now covers the majority of the country and we also offer the back-up and support of a central London auction room. This powerful combination of ‘local-plus-London’ is unique to Auction House, and has proved to be an outstanding success.

“The strides made in 2011 give us a strong platform for even further growth. 150 auctions have been scheduled for 2012 comprising around 3,000 lots and we will be opening more auction rooms in new territories across the UK later this year.

In this on line report, they examine the level of distressed stock in the residential auction market since the start of first signs of recession. They interpret these against the background of activity in the banking sector and endeavour to predict patterns of sale and demand in the year ahead. They look at the performance of assured shorthold and ground rent investments and examine how this may change in the context of movements in capital and rental markets. The analysis draws on statistical data from within four geographical areas of the UK.

Click here to download RAPID

He tells us:

 ” Another strong set of results in December epitomizes the trends witnessed throughout 2011. Increases were seen in both the number of lots offered and lots sold (up 3.7% and 8.1% respectively), and the sale rate of over 72% is only marginally below the annual rate of 74%. Overall total raised in December was down 13% (mainly due to a sizeable fall in commercial property receipts), however the longer term outlook seen in the quarterly and yearly figures remains encouraging.

Once again the residential sector showed growth in the majority of metrics measured, with notable increases seen in the volume of lots sold and the percent sold. December’s figures for commercial property were down against December 2010, but as noted before the quarterly and yearly figures fared much better with rises seen in every metric save for amounts raised.”

The judges commented on the excellent achievement and success which Auction House has enjoyed across both the auction and franchise sectors. As the fastest growing auctioneer in the country, it has not substituted quality for growth and its franchise offering is excellent. The aim of the directors is to build a strong and widespread brand through their franchise operation across the country and there is much evidence that this aim is being met through their actions. The infrastructure is robust and franchisees will see their financial investment met within 12-18 months, so can be satisfied that their cash flow will be positively impacted. Marketing is undertaken nationally which has increased brand awareness. Both franchisees and customers can be confident when using this business, due to the high standards designed and adhered to by all.

That was the week in property, by Mike Hoffa

30^th January 2012

There’s a popular saying in the showbiz world, which is the title of this week’s piece. You’ve no doubt used the phrase “the show must go on” yourself at various times, given its ubiquity.

People use it in all kinds of circumstances outside of showbiz, but in essence it means exactly what it says – that despite whatever problems are going on around you, things need to carry on. It’s exemplified in all kinds of situations and is often seen collectively in populations during times of crisis. Just hark back to the Second World War – for a moment in 1939 everyone stopped, wondering what on earth was going to happen. But then, despite the chaos going on around the world and the threat of bombs landing for anyone in big cities, people just got on with things because work still needed to be done and food put on the table for the family.

“…realisation dawns that 2012 isn’t going to see a bumper recovery, but is instead going to be a hard slog.”

It’s a spirit I think we’re starting to see with the economy (I won’t use the word recession because we’re officially still out of that and I’ve been told not to by David Cameron), as the realisation dawns that 2012 isn’t going to see a bumper recovery, but is instead going to be a hard slog. So we might as well buckle up and get on with our lives.

The good news for first time buyers is that there are hints that the banks are starting to take this view with mortgage lending too. A number of news channels, including the Guardian, reported this weekend about how new figures from mortgage lender Halifax show that in most areas of the country buying is now cheaper on a monthly basis than renting. For the average three bed home, it now typically costs £600 per month in mortgage payments as an owner, or £716 per month in rental payments as a tenant – a significant 16% higher for renting. And it’s not just based on misleading overall averages either – this differential is reflected across the UK.

So the key question I hear you ask is “but how can would-be buyers see that benefit when they can’t get the whopping deposit required to buy?” Well, here’s the really good news – one of the key drivers of these figures is the re-emergence of 95% mortgages, helping more people get back on the ladder. For sure, the criteria will be pretty stringent, but it shows that banks are getting realistic about how much deposit the average would-be buyer is likely to have.

“…one of the key drivers of these figures is the re-emergence of 95% mortgages, helping more people get back on the ladder.”

Of course, the other factors driving this are continued low interest rates and rising rents. As the pendulum resets and more people move toward home ownership both of these factors could change, so this won’t be the status quo for long.

So why are the banks being so sympathetic, despite the gloomy outlook? Well, it could have something to do with all the billions of taxpayers’ pounds they received as part of quantitative easing and a quiet word about how they should really start lending it out.

After all, that saying in full is actually “the show must go on, otherwise we’ll have to give them their money back.”

About the author:

Mike Hoffa has been working in the property sector for more years than he cares to remember, as a tenant, first time buyer, second time buyer, landlord, adviser and general trouble maker. He keeps his real identity fiercely secret, but some say he can often be found at the back of property auctions howling, but only when a full moon is out. He’s also rumoured to be of average height, weight, ethnicity and class, which he claims accounts for his inability to be politically correct or wear pastel coloured cardigans.

Mike’s question of the week: Time for the banks to start relaxing mortgage lending?

We have reproduced his regional analysis figures for the last quarter of 2011 below. 

Regional Auction Analysis

East Anglia

East Midlands

London

North-East

North-West

North-West Home Counties

Scotland

South-East Home Counties

South-West

Wales

West Midlands

Yorkshire and The Humber

Why pay for creativity and creative thinking time? What does it encompass, and why should I employ an Interior Designer?

Most clients are happy to pay for something tangible- a piece of furniture, wall coverings or a pair of silk curtains they have “fallen in love with”, but paying for creative fees sometimes hits a little resistance.  Then there are those who are used to the process and appreciate the amount of work involved and are therefore happy to pay the creative fees – they are generally the ones who have seen the benefits, having utilised the skills of a good Interior Designer before.

If you thought that employing the services of an Interior Designer was only for the uber rich, then let me explain what I do and how I can (hopefully) change your perception.

 The outline benefits are:

 -        Spatial Design suggestions for a potential change of an existing room layout/shape to enhance how a client uses their home.

-        Provision of a scheme which takes into account other parts of the house and considers the overall ‘flow’.

-        Someone who will challenge the status quo when it comes to new lighting or architectural finishes within the scheme.

-        Provision of bespoke soft furnishing or furniture options to provide unique solutions if required.

-        Shared trade margins. An established Interior Designer will have trade contacts which can either be passed to the client or shared between both parties to save on purchase costs.

 The Process:

-        Starts with provision of a design board showing all the elements that will make up the new scheme. This is a working document which can have some elements “tweaked” and changed prior to ordering. This will ensure all finishes, fabrics, colours and textures are working together and agreed by both parties before anything is ordered.

-        CGI (computer generated images) can also be an additional tool to show the new room(s) as a 3D image – an essential tool for clients who are abroad and need to sign off a scheme. (Additional fee normally applies)

-        Next step, Designer implements schedules and co-ordinates all of the purchasing, delivery logistics and organises made to measure/bespoke items as required.

-        Once everything has come together, the final step is to sign off the scheme with one happy, stress free client.

It is worth noting that if a Designer is used solely for the purchase of items on behalf of the client, they would normally charge the standard RRP as there is no design fee involved. This is to cover Designer time to measure up, generate the purchase orders and organise deliveries to site. The margin between trade price and full retail would cover this level of service.    

That’s it in a nutshell – it’s about taking the headache away from those that find it stressful, or are short on time, helping them make all or some of the decisions that are required, and also about providing fresh and innovative ideas that the client wouldn’t have necessarily arrived at themselves. That level of creativity and decision making involves a lot of time and interaction between Designer and client. If the client understands the level of service they are receiving and also the financial benefits, then the future should be plain sailing and both parties will share a mutually beneficial relationship.

 Rachel Cooper Interiors Ltd:  01753 831838. www.rachelcooper-interiors.co.uk

Don’t steer us onto the rocks Vince

That was the week in property, by Mike Hoffa

23^rd January 2012

It’s somewhat incredible, given the amount of safety technology we have these days, for a disaster like the Costa Concordia sinking to happen.

Sadly, as more and more evidence emerges it’s starting to look quite bad for Captain Francesco Schettino, with allegations of unapproved course changes and leaving the sinking ship very early on, suggesting that he abandoned the remaining crew and passengers to their fate. All will no doubt come out in the full investigation, but what started as apparently some kind of daring “maritime salute” has resulted in at least 11 deaths.

Whatever the outcome, there was clearly no intent to crash the ship and cause any loss of life, but the road to hell is paved with good intentions as they say and the “unexpected consequences” could perhaps have been predicted with a bit more foresight, despite claims that the rocks on which the ship collided are not present on any maritime charts.

“Vince Cable has just announced his intent to put into place a new ‘mansion tax’ on high value properties…”

Unexpected consequences when it comes to the economy too is a theme I keep harping on about and it’s quite pertinent this week, as Vince Cable has just announced his intent to put into place a new “mansion tax” on high value properties, as the Telegraph reports.  The proposal put forward by Mr Cable (and supposedly backed by some Conservative MPs) is that a 1% tax should be levied on properties worth more than £2m.

The Telegraph goes on to quote Vince Cable as describing it as “perverse” that rich “foreigners” can buy high value UK properties and contribute nothing towards the economy other than £1,000 per year in council tax.

And this, I’m afraid is where old Vince is starting to look about as sensible as Captain Schettino.

If you consider for a moment the piece I wrote last week about investment in our capital city, where I discussed the high level of investment from wealthy foreigners in London you might start to get an idea of how misguided this mansion tax proposal is. The fact is that London has consistently bucked the property market stagnation we have seen in most parts of the country, as it continues to see remarkable growth in value and interest.

“To dissuade such investors from putting their money into UK property is quite simply barking mad…”

Much of this interest has come from outside the UK, but these wealth overseas investors bring far more with them than just an interest in a UK holiday home. They are typically successful business people themselves and it brings their business interests to the UK too, which can only have a significant positive impact on our economy.

In other words, to claim the impact of such foreign investment is limited to council tax is ludicrous. To dissuade such investors from putting their money into UK property is quite simply barking mad, with potentially disastrous consequences for the broader economy. As a bare minimum, it is almost certain such a scheme would cost us far more than it gained.

The only saving grace is that the Chancellor, George Osborne, is unlikely to approve such measures. Hopefully he will act as a “lighthouse of sanity”, but please Mr Cable – don’t steer our economy onto the rocks with your mad manoeuvres.

About the author:

Mike Hoffa has been working in the property sector for more years than he cares to remember, as a tenant, first time buyer, second time buyer, landlord, adviser and general trouble maker. He keeps his real identity fiercely secret, but some say he can often be found at the back of property auctions howling, but only when a full moon is out. He’s also rumoured to be of average height, weight, ethnicity and class, which he claims accounts for his inability to be politically correct or wear pastel coloured cardigans.

Mike’s question of the week: What do you think of a proposed mansion tax?

That was the week in property, by Mike Hoffa

16^th January 2012

Oh dear, Standard and Poor’s has been at it again and this time they’ve upset the French.

Despite much Gallic protestation, including the amusing attempt to point the finger at us as being in front of them in the queue, France has lost its AAA credit rating and is now down to AA+. They’re not the only ones to suffer though, with Austria also going the same way and numerous other countries who have already lost their AAA rating slipping down even further. Portugal now has the “junk” rating of BB, so whilst it might be good for a golfing holiday I wouldn’t go sticking too much money there right now.

So how come France has been hit whilst the UK has managed to (for the moment at least) hold onto the top credit rating?

Simple, we’ve got London.

“I’m sorry my French friends; Paris is undoubtedly a buzzing and vibrant city and a major financial centre, but it doesn’t quite stack up to London on the global stage.”

I’m sorry my French friends; Paris is undoubtedly a buzzing and vibrant city and a major financial centre, but it doesn’t quite stack up to London on the global stage. Just take a look at the three major credit rating agencies for a start – two of them (Standard and Poor’s and Moody’s) have their headquarters in the US, but the third one, Fitch, is jointly headquartered in New York and London, highlighting how important they see it on the global financial markets.

It’s also something that is highlighted by the continued investment in London property, both commercial and residential, with figures that defy the stagnant and recessionary property markets that are visible in many parts of the UK and abroad. The trend is clear from the latest Knight Frank report, covered by the Financial Times recently, which highlights the difference in property value growth between rural areas and London. If you had been in the fortunate position to invest £5m in a home in 2009, putting it into London would mean you now had an asset worth £6.75m, whereas in the country you would only have made half a million on your initial investment.

Of course, a 10% capital growth over a few years is not bad in the current climate, but the 25% growth from London investment is simply stellar. One major factor in the healthy state of the London property market is an influx of cash from foreign investors, whether they be rich Russian oligarchs or new Chinese billionaires, because the track record of London as a major commercial centre has a solidity that defies any short-term economic woes.

“…the halo effect of a healthy London on lower value properties and suburban areas on the outskirts should make it a good place for keeping an eye on investment property…”

Furthermore, the capital invested in London seems to be staying there, so people aren’t cashing in their chips for a nice country estate – they think it’s going to stay very healthy in our capital in the future.

And with the Olympics just around the corner, there is a lot (and I mean a LOT) of money being invested in our capital right now, which is going to leave a lasting legacy that can only be favourable for the future. Okay, so we don’t all deal in five million pound properties, but the halo effect of a healthy London on lower value properties and suburban areas on the outskirts should make it a good place for keeping an eye on investment property over the next few years.

It might also be a key factor in helping the whole country get back toward a healthy, growing economy. To continue the Olympic theme, think of London as our star performing Gold medallist who inspires the rest of the team, with all the world looking up thinking “I’d like to be there”.

Except maybe France, who don’t seem to like their new silver medal very much.

About the author:

Mike Hoffa has been working in the property sector for more years than he cares to remember, as a tenant, first time buyer, second time buyer, landlord, adviser and general trouble maker. He keeps his real identity fiercely secret, but some say he can often be found at the back of property auctions howling, but only when a full moon is out. He’s also rumoured to be of average height, weight, ethnicity and class, which he claims accounts for his inability to be politically correct or wear pastel coloured cardigans.

Mike’s question of the week: Can London keep us on the AAA track?

That was the week in property, by Mike Hoffa

5th January 2012

Well there we go, we’ve once more managed to get through that day of celebrating with your friends culminating in dancing and a bit of a disappointing bang. No, I’m not talking about your wedding day – another New Year has come and gone.

It certainly seemed like an interesting one this year. The usual drunken merriment seemed to be all the more edgy as we headed into 2012, a year which could prove to be a very tough one for many people. Let’s face it, when even the politicians are saying “this is going to be sh*t” you know it’s not going to be an easy ride.

However, not one to be beaten down by the usual ups and downs of economic cycles I thought it worth looking ahead over 2012 to see were there might be some opportunity in the property world. The only thing is you might need good eyesight because a good portion of that opportunity won’t be found on our own fair shores – expect continued stagnation of the UK property market, in my opinion.

“…when even the politicians are saying ‘this is going to be sh*t’ you know it’s not going to be an easy ride.”

If you’re willing to cast your net further afield, Reuters posted a good piece speculating (and quite frankly that should be Speculating with a very large capital “S” in the current climate) on overseas commercial property investment opportunities. The US seems tipped to remain the most popular choice once again, but it seems that the Brazilians are also evading the cutbacks [Ed – that’s terrible Mike, you’re fired – again] and could even be gaining ground on the US when it comes to commercial property investment.

But Brazil only leads the pack from what seems to be a clear trend of emerging markets proving more popular as investment opportunities. The festively named Turkey also appears popular with investors, with India, Vietnam, Colombia, Hungary and Qatar all making the top 20. But before you starting shouting “hang on a minute, Mike – you said China had gone boom last time”, investment in these regions does come with a word of warning. They’ve all seen growth rates to rival or exceed those of Western markets just before the crash and there are hints the tide may be turning, so invest wisely!

However, closer to home it’s good to see that London remains the number two global city for investment just behind New York, according to Reuters. This means that both commercial and residential property in our capital and the surrounding commuter belt is going to remain a relatively safe bet, despite everything else that is going on with the economy. After all, if it can keep its value held up at the moment, it’s got to be based on pretty sound fundamentals.

“The festively named Turkey also appears popular with investors, with India, Vietnam, Colombia, Hungary and Qatar all making the top 20.”

And don’t underestimate the potential for picking up some property bargains around the rest of the UK in 2012 either. Just as recessions are good times for companies to invest for the future, the savvy property investor might also find it a good time to broaden their portfolio, with deals available that you won’t find during the boom years.

Whilst we all know I’m biased because I know the boys at makeoffer pretty well by now, I have to say that 2012 could well be the year to keep a closer eye on property auctions, even if they’re not normally your bag. I’ve seen some very keenly priced properties springing up recently at auction and was even tempted to dip into my own pocket recently, so they could be onto something.

So buckle up as we hurtle through 2012 – no doubt it’s going to be a bumpy ride. But for those who can keep their chin up and take the time to look around, it could be a very good year to invest in property.

About the author:

Mike Hoffa has been working in the property sector for more years than he cares to remember, as a tenant, first time buyer, second time buyer, landlord, adviser and general trouble maker. He keeps his real identity fiercely secret, but some say he can often be found at the back of property auctions howling, but only when a full moon is out. He’s also rumoured to be of average height, weight, ethnicity and class, which he claims accounts for his inability to be politically correct or wear pastel coloured cardigans.

Mike’s question of the week: Time to spread your property investments in 2012?