19 Jun 24
The Royal Institution of Chartered Surveyors has launched a new comprehensive and impartial guide to assist investors and other property owners and vendors in making fully informed choices when buying or selling at auction.
The guide, produced by the RICS Real Estate Auction Group, has been updated in response to the significant growth seen in the property auction sector over the last few years, including the rise of online auction websites, and highlights what both buyers and sellers should be aware of and what they should expect from their professional auctioneer.
For sellers, it provides advice on selecting an auction firm, understanding key terms of appointment, and the importance of accurate sales particulars and legal packs.
For buyers, the guide details the steps for preparing for an auction, the necessity of researching any information provided to you, and the importance of professional advice. It also emphasises the need for buyers to stay in close contact with the auction firm up until the property is offered.
The main advantages of selling at auction as highlighted in the guide, are:
Certainty: properties are not sold ‘subject to contract’ in the same way as through a traditional agency sale method. The successful bidder is legally obliged to complete the sale once the hammer falls;
Good marketing exposure: auctioneers advertise online and have extensive databases of potential buyers from previous sales;
Speed: the sale is relatively quick and completion usually take places between four and six weeks after the auction.
When choosing an auctioneer in the sale of a property, it is advised to appoint a member of a professional body such as RICS, meaning they are regulated and have strict rules of conduct which protects the consumer, as well as holding appropriate professional indemnity insurance.
A non-regulated auctioneer may not follow these rules of conduct.
RICS Head of Professional Practice, Paul Bagust, comments: “As the property market continues to evolve, auctions offer a transparent, secure, and swift process that benefits both buyers and sellers, particularly in a dynamic market environment.
“RICS is the largest organisation for professionals working in land, property and construction globally and our members can advise you on a number of aspects of your transaction including valuation, home surveying, property management and investment as well as advising on how to achieve the best result from an auction.
A survey of over 1,000 landlords finds they appear largely reconciled to the election of a Labour government after 14 years of tax and regulation changes under the Tories.
Some 82% have chosen to maintain the size of their buy-to-let portfolio under the Conservative Government. However, one in 10 have chosen to reduce its size, while just 6% have added to it.
And 78% stated that they will continue to maintain the current size of their portfolio should Labour win the general election.
However, almost two in 10 (19%) stated that if Labour were to win they would reduce the size of their portfolio, double that to have done the same under a Conservative government.
When asked which of Labour’s rental market promises they were least in favour of, the intention to end automatic evictions for tenants who fall into rent arrears ranked top.
Rights for renters to have pets was the second least favourable Labour policy, while mandatory EPC upgrades also rank high at number three.
The abolition of Section 21 notices only placed fourth, with four month notice periods also making the top five.
A spokesperson for Zero Deposit, the company that commissioned the survey, says: “The election itself has inadvertently shelved the implementation of the most significant rental sector changes in many years and while it remains to be seen just what will come of the Rental Reform Bill, most landlords will be understandably lacking confidence that either party will drive any real improvement in the sector.”
The company used a PR firm to question 1,095 landlords on June 5.
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