Monday, April 6, 2009

First REDC auction in the UK and all the buyers were BTL investors!

Repossessed homes go under the American hammer

Britain's first US-style auction of repossessed properties took place in Gateshead this week. There's nothing new to repossession auctions – another nine will take place on Saturday, organised by the likes of Savills, Jones Lang LaSalle and Allsop – but REDC does them with a little more song and dance than the Brits. Two croupier-like "bidders' assistants" from California HQ theatrically tease up bids with whoops, hollers and whistles. REDC, and bidders at its auctions, stand accused of cashing in on the misery of repossession victims. REDC deny the charge - "We're turning houses back into homes, by bidding today, you can be part of the solution." However nearly all buyers are BTL investors: "So when will your daughter be moving in?" / "Oh no, she won't be living in it. She's an investor."

Posted by drewster @ 02:12 AM (1590 views)
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One thought on “First REDC auction in the UK and all the buyers were BTL investors!

  • Ray Calverley says:

    The sale of repo-properties with a 10% take by the auctioneer is unsustainable. If you charge the buyer a 10% premium, then that will come off the price that they will bid for the property. The future of auctions is on the internet. The web auction, launched today have a half percent fee paid by the seller and a £1,000 buyers premium which pays for a survey and legal costs that all bidders get to see before the auction.

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