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Auction sales are booming, despite slowing housing transactions – Pinnington

by: Dave Pinnington, director of intermediary relations at Finance 4 Business
  • 20/09/2018
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Auction sales are booming, despite slowing housing transactions – Pinnington
There’s not much reason to beat around the bush – the fact is we are all currently operating in a decidedly flat market.

 

According to research from the Royal Institution of Chartered Surveyors an upturn is not on the horizon even though the number of properties coming on to the market has risen.

If your bread and butter business is mortgages you may be feeling the strain.

Of course, if you’ve been around long enough you’ll remember the days post-credit crunch when the market all but dried up and, hopefully, we have all learnt from that.

Indeed, many brokers saw the need to diversify first hand.

Buyers were non-existent and revisiting client books to look for other opportunities became necessary.

 

Improve not move

Protection business always offers an additional income stream for brokers, along with more reason to speak with clients and potentially unearth more business opportunities.

But there’s also the specialist sector to consider.

Indeed, in a flat property market the specialist sector can really come into its own.

For example, according to a report by Hiscox Insurance, the number of people choosing to renovate and improve their current home rather than moving has risen five-fold since 2013, from 3% to 15%.

That’s four million homes.

 

Auction sales spike

Bridging is the ideal solution for this and according to the latest Bridging Trends data more than a third of all bridging lending in the second quarter of this year was for refurbishment projects – up from just 18% in Q1.

Furthermore, several leading auction houses have reported spikes in business of late – so while the traditional sales market may be slow, the auction market is booming.

And bridging is helping many buyers to secure those properties.

In a flat market you need to find your own opportunities – and the specialist sector is home to a countless number of these.

 

 

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