In recent history, we’ve not seen a more tumultuous year for the property market than 2016, and the auction sector was not immune to that.
According to the Essential Information Group – which monitors statistics for the sector – activity last year fell by around 10% on 2015. There are a number of clear reasons for that, not least the additional stamp duty charged on investment properties, which has made ‘flipping’ properties less financially attractive, at least to the amateur investor.
However, we still see strong interest from property professionals. Not only are they better positioned to absorb additional costs, such as the new stamp duty charge and the various changes to taxation, but they are also able to step in and pick up properties that the part-time investors are now selling off. To make property investing worthwhile now takes more planning and more careful assessment of the costs involved, but that suits the professional investors that we work with and who are most likely to target property auctions.