More properties sold at auction
News Category: Industry News
Published: 31-Aug-2007
Landlords can increasingly pick up bargains by buying residential property at auction, a new report suggests.
According to a report from Rics, the number of residential properties sold at auction in the UK jumped by 32 per cent in the second quarter of the year.
In total, 5,120 residential properties went under the hammer in the period - the highest number in any quarter in the last two years.
Not only did this mean that landlords could potentially expand their portfolios relatively cheaply, but it also indicates that many consumers are struggling to afford their home as interest rates increase.
Indeed, Rics has estimated that there could be in excess of 45,000 repossessions in 2008 in the UK.
As a result, more and more people could find themselves renting for longer.
"With the full impact of interest rate rises in 2007 yet to filter through into higher mortgage costs we continue to expect a rise in the number of homes going under the hammer into 2008," explained Rics economist, Oliver Gilmartin.
Recently, experts revealed to the Independent newspaper that it was vital for landlords to carefully consider the location whenever thinking about buying new properties.
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This article was brought to you by Rentman the premium property management system.
