Will the housing market benefit from online auctions?

It has been reported this week that property auction house Allsop is planning the country’s first ever online-only auction for new build homes, writes Development Specialist Richard Carr.

Online

Richard Carr

Will property auctions succeed online?

The internet has transformed the way that the UK shops. Virtually anything that is consumable can be purchased online, but will an auction style method work for the property market?

On Wednesday 10 June, newly built flats on the outskirts of London will go under the hammer for exactly 24 hours and 5 minutes.

Allsop’s residential auction partner Gary Murphy, explained: “This new service provides a superior route of sale for new properties and will co-exist harmoniously alongside our traditional ballroom auctions.”

Traditional ballroom auctions don’t attract the younger, first time buyers. It’s a step into the unknown, which doesn’t appeal to youngsters. However, an online auction is far more generational and will likely attract a younger crowd.

“We identified a niche specifically in the new build market and felt strongly that there should be a simpler, more transparent, fair, convenient and certain way of investing in new homes,” added Murphy.

Interest from buy-to-let investors

Clearview Homes developed the canal-side flats and expect to raise a lot of interest from buy-to-let-investors.

“When presented with the opportunity to be the first developers we didn’t hesitate,” says Clearview Homes CEO Stephen Murphy.

“It is the perfect platform for our product which we believe will appeal to investors not just locally but nationally and even internationally. We know for sure that we will make sales on the day and achieve the best possible price.”

Although this is Allsop’s first venture into new-build auctions, it isn’t the first time they have entered into the online auction market. Earlier this year, they held a resale auction in Ireland, which attracted 200 bidders and almost 7m euro in sales.

Richard Carr believes that it’s great news and a further facet to selling property in what is fast becoming a strong and hopefully sustainable market.

Let’s hope that innovation continues and people are happy when they get there homes.