Property auctions increasingly popular - commercial mortgages

06 November 2006

Property auctions are becoming increasingly popular among investors, such as those with commercial mortgages, a new report reveals.

According to a survey by the Royal Institution of Chartered Surveyors (Rics), people seeking to buy or sell property are often attracted to the speed of the auction process, while the system is becoming far more "transparent".

During the third quarter of 2006, 940 commercial properties were sold at auction, while property sold in the second quarter amounted to £324 million, compared to £284 million sold during the same period last year.

Commenting on the popularity of auctions, Richard Auterac, chairman of the real estate auction group at Rics, says: "Once the hammer comes down, neither the seller nor buyer can withdraw and the process is completed within the set time – with no danger of any link in the property chain breaking."

Last month, Osborne King reported that £43 million of commercial property, including retail, office and property development land, was sold during an auction in Northern Ireland.