Barnett Ross Auctioneers 2017 Property Review.
2017 was almost perfect. Bring on 2018.
Highlights
- Barnett Ross ended the year with an 94% success rate. Matching exactly our average for 2016, that sustained performance cements our position as one of the UK’s most successful property auctioneers.
- Two of our 2017 auctions delivered a 100% success rate.
- We raised £77.6 million in 2017, an incredible £10 million increase over an already strong 2016 performance.
What can we learn from 2017?
The growing appeal of combined retail and residential
One of the most significant trends of the year saw a sharp increase in demand for retail units with residential accommodation above. These lots, always let on a single lease to a single tenant, drew strong bidding in the auction room with sale prices consistently exceeding expectations. Lots of this kind are now delivering yields of sub 5%. Two of our most interesting examples, both let to local traders, include Cannon Hill, Southgate (May ’17) delivering a yield of 3.5%, and 58 High St, New Malden, delivering a yield of 4.6%.
The value of a unique lot
The highly unusual Putney Boathouse (July ’17) delivered a gross yield of 4.75%. This was more than a validation of an affluent area. This was just one example of the popularity of lots offering buyers something a bit different. The challenges presented by unusual properties continue to be outshone by their appeal.
The Crossrail transformation
In May 2017 we saw huge interest in a property in Clerkenwell Green because of its proximity to a Crossrail station. As we move closer to the 2019 launch date, interest in lots close to Crossrail stations will only intensify. The project promises to have a transformational effect on the capital, and its property landscape.
The value of residential is timeless
Throughout 2017 there was much negative talk about the residential market. And yet, in Borehamwood, (Oct ’17), we saw a mainly residential investment of 8 flats and a shop sell at a gross yield of 5.1%. The opportunity to buy 8 flats in a popular area with a single transaction was tempting enough to defy the pessimists. For the right residential lot in the right area, the residential market remains lucrative.