Auction reveals crunch signs

May 21 2008 by Tony McDonough, Liverpool Daily Post

SUTTON Kersh has raised more than £4.5m from its latest Liverpool property auction, but says there are signs the credit crunch is having an effect.

Two pubs were among the 116 lots that went under the hammer. The opening lot, the Spekeland pub, had a guide price of £100,000 and sold for £127,000.

The Dart pub, in Lodge Lane, attracted a good level of bidding and eventually sold for £50,000 above its guide price at £127,000.

Another lot that caused a frenzy of bidding was a mixed-use investment in Aigburth Road.

Two bidders battled it out before the hammer hit the table at a price of £125,000 – 25% more than its guide.

Sutton Kersh director James Kersh said: “It was probably our toughest auction to date and sales were down. The auction room was still very well attended, showing that Sutton Kersh auctions are still very popular with investors but most people chose to sit on their hands.

“Pre auction, I was very nervous and the chairman of The Bank England’s comment (about a possible recession) that morning didn’t help my optimism.

“Vendors now need to be realistic and realise that we are operating in a different market to 12 months ago, even four weeks ago.”