Auction House Sussex, a branch of the UK’s biggest property auctioneer and a valued partner of Austin Gray, is seeing more and more evidence of an increasing number of buy-to-let landlords choosing to sell their properties at auction.
Nick Muston FRICS, auction manager, says that the argument is swinging back to favour those selling homes as tenanted investments rather than serving notice to the tenant and selling them as vacant properties.
He explained that “the problem for the landlord is how to achieve the best sale price without losing too much rental income. An auctioneer will recommend that landlords sell with tenants remaining in place and the properties offered as tenanted investments.” The advantage of this is that the landlord continues to receive rent while the sale is taking place. The property also usually presents better when occupied and tenants are able to stay put rather than be forced out. In other words, it’s a win-win for landlords and tenants.
With 2016 becoming a record year for Auction House Sussex’s sales, Nick explained that the “demand for residential investments hasn’t dropped away as many pundits suggested. There was some seller hesitancy immediately following the introduction of the Stamp Duty surcharge but this is now behind us and entries are strengthening.” Most professionals believe that the outcome of the EU referendum will have little effect on the auctions market. Nick stated that buyer demand is still high and predicted that activity will only increase in the summer and autumn months.
Finally, Nick commented, “as far as buy-to-let is concerned, there are still numerous cash-rich buyers who see rental property as a highly valued part of their investment programme. It’s one that has consistently delivered in the past and should continue to do so in the future.”