Despite a series of reports suggesting the property market throughout the UK is plummeting, a recent auction hosted by one of Coventry and Warwickshire’s leading estate and letting agents has proved that the market remains buoyant within the county.
According to a report issued by the Financial Times in 2018, house price growth within the Midlands has overtaken London and in the South, with further predictions suggesting that out-of-town investors will target the region in the forthcoming years to capitalise on this latest market cycle.
With several properties being purchased for well above their guide price and over 80% of lots being sold on the night, Loveitts’ latest auction suggests the Coventry Warwickshire is remains a profitable region for property sellers and buyers alike – and is bucking the trend compared to areas where property growth was historically prosperous.
Selling for almost double than its original guide price, the most successful lot sold on the night sold for £164,500, despite the commercial property having a guide price of between £80,000 and £100,000.
Requiring modernisation throughout, a three-bedroom property based in Wyken, Coventry also smashed its guide price of £90,000 to £100,000 and sold for £162,000 at auction.
Another hot lot took the form of a 3.4-acre parcel of land situated off Shilton Lane in Coventry – smashing its guide price of £100,000 - £150,000 by over £80,000, selling for £232,000.
Among the properties sold above their guide prices were a commercial property that previously produced £15,840pa, one of the cheapest flats in Coventry, a three-bedroom detached bungalow based in Tile Hill, Coventry and a parcel of land comprising of a layby for four vehicles in Walsgrave, Coventry.
According to experts at Coventry’s longest established estate agents, Loveitts, the increase in the number of investors coming from outside the region has steadily increased over the past 12 months and could have factored in their most recent auction success.
Director and Auctioneer Sally Smith commented: “Auctions are fast becoming a legitimate route to market for both sellers as well as buyers which can be seen by the increase in lots over the past twelve months at the Loveitts bi-monthly auction.
“With properties selling for as much as 64% above their guide prices, prospective sellers can be confident in the auction process as lots that generate interest will usually have their guide prices beaten on the night.
“We were delighted that despite political uncertainty affecting the property market heavily in certain regions, Coventry and Warwickshire remains buoyant and a sought-after area for investors, sellers and prospective home owners.
“The growth in bumper crowds at our auctions prove that Coventry and Warwickshire is very attractive for both buyers and investors and we are looking forward to our next auction on Thursday 11th July.
“A noticeable spike in bidders coming from all over the UK proves shows how sought after the area is for out-of-town investors – and we can only see the interest persisting as more people look to move to the area due to the rise in the county’s student population and the 2021 City of Culture bid.”