Commercial Auction Summer Review 2015
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Buyer analysis

Our regular buyers’ survey, conducted at the point of exchange in the auction room, has again revealed a number of interesting trends.

Have you bought a commercial property at auction before?

The proportion of new buyers reduced, continuing the trend seen since the inception of the survey and now accounts for 18% of all purchasers, in line with previous surveys, purchasers keep coming back for more.

Do you intend to buy another commercial property at auction?

We have also seen the experienced buyers return to the market. The number of purchasers intending to buy again in the next 12 months has risen to 81%.

How much do you intend to invest?

The number of purchasers looking to invest £1m or more remained high at 34%, as did the number of buyers looking to invest between £250,000 to £500,000, at 26%. Demand for lot sizes of £500,000+ remains firm at 63%, albeit down slightly from 68% over the past 12 months.

Do you intend using finance to fund your purchase

With regard to finance, the total number of purchasers intending to use debt finance has decreased to 31% from 35% in 2014, which is surprising but may be due to recent pension reforms. The preferred Loan to Value ratio does however remain low with 52% of buyers not intending to use in excess of 50% LTV.

How far are you located from the property you have purchased?

Locally based buyers continue to compete in the national market. The out of region buyer predominated in the period with 57% of purchases (50% 2014). Overseas investors are increasingly represented.