City property sales top the £80m mark

Dec 31 2007 by Tony McDonough, Liverpool Daily Post

MERSEYSIDE’S two leading property auction houses grew their total auction receipts to more than £80m in 2007 – up from £69m last year.

Sutton Kersh reported nearly £6m in receipts from its last event of the year, at the Marriott Hotel, in Liverpool, with 77% of the 79 lots available sold. That takes its total for the year to £44.45m, up from £37m in 2006.

Rival Venmore also saw healthy year-on-year growth. Its final sale of the year generated £2.5m, taking its total for the year to £37m – up from £32m last year.

However, Venmore director Phil Cassidy said the final figure was still around £5m less than they had hoped for. He also struck a cautious note for the property auction market in 2008.

“In 2004, following the Capital of Culture announcement, the market in Liverpool was booming,” he said. “It slowed in 2005 but then picked up again the following year.

“Up until quite recently, borrowing has been very easy and property investors have been taking full advantage of that, but since the problems began in the credit markets, that picture has started to change.

“Properties are still selling but perhaps some of the more unusual properties that were selling fine six months ago – say, a small flat with a shop above – are becoming more difficult to sell.

“I think how 2008 goes largely depends on which way interest rates go. More cuts in the rate might make things a little more affordable for investors.

“Because of the tightening of the debt markets the more experienced buyers are now being more cautious and are prepared to wait to see how the market goes.”

Sutton Kersh director James Kersh said he was very pleased with the performance of the business in 2007.

Its fledgling London-based joint venture – Sutton Kersh Binstock – generated receipts of more than £17m in 2007.

Mr Kersh added: “This year alone, we’ve achieved a staggering total of nearly £45m in receipts based mostly on residential sales yet with a significant and increasing commercial portfolio.

“Considering this year’s market conditions, we are delighted with both our achievements and the outlook for 2008, having become one of the leading players in the market.”

tonymcdonough