Slough-based sales and letting agents Orchard & Shipman have entered the property auction market with the aim of creating a market in tenanted properties.
At the company's first auction last week nearly half of the properties sold housed local authority tenants.
In only a year, the number of property auctions around the country has risen from 176 in the first quarter of 2003 to 194 in the first quarter of this year. The total value of properties auctioned has risen from £763.9m to £ 912.8m in the same period.
The figures were released by the EI Group, the data providers for property auctions around the country.
Chris Shipman, chairman of the O&S, says ” It is better to find a property with a tenant already in it and with a proven track record.”
“The auction solution allows the landlord to move on without effecting or displacing the tenant. There is the added advantage that exchange happens at the auction and completion takes place 28 days later.”
The next auction is scheduled for June when the proportion of tenanted properties sold is expected to increase. Orchard & Shipman hope this will pave the way for more interest in investment properties to fulfil urgent local authority housing needs.