WHEN IT COMES TO BUYING AT AUCTION YOU’VE GOT TO BE IN IT TO WIN IT!

I received a phone call recently from a lady called Sally. Sally is a first time buyer living in London. She is looking to buy a property, but can’t afford anything in London – and doesn’t foresee being able to anytime soon. But with money in her bank she is keen to get on the property market somewhere – even if it doesn’t mean actually living in the house herself. Hence the telephone call to me here up North.

So in brief, Sally is a first time buyer, looking for a buy-to-let investment in the North West. We spent some time together discussing various BTL models and different areas that would suit her budget and circumstances. And then she asked me an interesting question…

There has been plenty of talk about property prices increasing in light of the proposed stamp duty increase on 1st April. There is a lot of hype around the market at the moment with news that eager landlords are swamping the market desperate to buy property pre-April, and complete in time to save an extra 3% on Stamp Duty.

Given that Sally is a first time buyer, this new ruling won’t affect her and, therefore, she wanted to know if now was a good time for her to buy a property, or whether it would be more prudent to wait until after April? She’s in no rush after all.

So I’m going to address Sally’s question here:

First of all – don’t get too carried away with all the Stamp Duty talk. Yes, there has been an increase in the number of buyers coming to the market, but there has also been an increase in the number of sellers coming to auction to capitalise on this increase in demand. We have a client who recently put sixteen of his properties in our auction hoping to achieve higher sales prices before April. So whilst demand has increased, so too has supply and, therefore, prices aren’t “rocketing overnight” as reported elsewhere. As is often the case, the reality is not as dramatic as it may seem in the media.

So should Sally look at this auction to buy her first ever property?

Of course she should.

Her finances, whilst quite tight, are in place, and she has plenty of time to research my suggested areas and carry out all the relevant due diligence for the properties that meet her criteria. So why shouldn’t she?

Yes the auction room on 16th March might be hungrier than usual, and Sally will be bidding against more experienced buyers, but it wouldn’t be an auction without competition. And there is always going to be something in the news that could put you off buying. If it’s not Stamp Duty, it’ll be interest rates. Before that we had Home Information Packs – who remembers those? There will always be obstacles and there will always reasons why now isn’t the ideal time to buy. But if you see something that you’re looking for, if it fits your criteria and your budget and you do all your homework before the auction, then why wouldn’t you go for it?

Are you guaranteed to be successful on the auction day? No. But nor is the seasoned investor on the other side of the room who you’re bidding against. One thing’s for sure though…

You’ve got to be in it, to win it!

If, like Sally, you have lots of questions about buying a property at auction, get in touch.

@AndyT___

 

You May Also Enjoy

Rightmove logo
Breaking News

Rightmove’s weekly mortgage tracker 30/05/25

Average rates for 2-year and 5-year fixed-rate mortgages   Term Average rate Weekly change Yearly change 2-year fixed 4.64% +0.03% -0.78% 5-year fixed 4.61% +0.03% -0.45%   Lowest rates for 2-year and 5-year fixed-rate mortgages   Term Lowest rate Weekly change Yearly change 2-year fixed 3.82% +0.02% -0.93% 5-year fixed 3.88% +0.09% -0.55%   Average…
Read More
Home and Living

Carpet Cleaning Specials in Stanton: Save on Your Next Service

Sure, the carpeting in your Stanton home is inviting and adds warmth and comfort, but it can also store harmful dirt, allergens, and bacteria that can affect your family’s health. This makes regular carpet cleaning not only better for your health, but also your wallet. With Carpet Cleaning Stanton specials, you can save on the professional services…
Read More
Rightmove logo
Breaking News

Seven in ten branches now using Rightmove’s insights and training platform

New figures from Rightmove, the UK’s largest property platform, show that seven in ten estate and letting agency branches are making use of its insights and training platform, the Rightmove Hub. This is up from 56% of branches back in 2023. The Hub, first launched ten years ago and recently revamped, has expanded in response…
Read More
Letting Agent Talk

From Fixer-Upper to Profitable Asset: Strategic Renovations for Landlords

Did you buy a fixer-upper? Or maybe you inherited one. Either way, you’re standing in a place with peeling linoleum, a questionable smell, and wallpaper that could file for social security. The big question: Do you patch things up, go full HGTV, or just torch it for the insurance (don’t do that)? First, take a…
Read More
Breaking News

Household Costs Indices for UK household groups: January to March 2025

Household Costs Indices, 12-month growth rates, expenditure shares and contributions for UK household groups and all-households. These are official statistics in development. Main points Overall UK household costs, as measured by the Household Costs Index (HCI), rose by 2.6% in the year to March 2025; this is a fall from 2.9% in the year to…
Read More
Surge in country and seaside property values
Breaking News

Why Rural House Prices Are Surging Faster Than Cities

New analysis from Open Property Group reveals that rural England is facing an affordability crunch, as house prices in the countryside outpace urban growth, despite lower average wages and higher living costs in remote areas. These shifting dynamics are challenging the long-standing assumption that rural life offers a more affordable and sustainable alternative to the…
Read More