Table of Contents
- Auction Properties in Manchester
- Property Prices In Manchester
- Where Should You Look For Auction Properties In Manchester?
- What Type Of Auction Property In Manchester Should You Look For?
- Five Reasons To Buy Auction Properties In Manchester
- How to Find an Auction Property in Manchester
- Preparations in the Lead Up to the Property Auction
- Popular Manchester Property Auction Questions
- Exercise Due Diligence Before Any Property Auction
- How to Bid for Auction Properties in Manchester
Auction Properties in Manchester
Why Buy Auction Properties in Manchester?
With so many people being priced out of the southern property market, finding auction properties in Manchester is a viable alternative and could save you thousands of pounds. The future opening of the high-speed HS2 rail link will make it even more viable for long distance workers to commute to their workplace. Living in Manchester has all the benefits of a vibrant modern city with plenty of job opportunities combined with close proximity to the countryside and coast.
Manchester is also attracting a lot of interest from property investors. Over the past 5 years, property prices in the area have increased by nearly a third while it is forecast that they are due to rise by a further 22.8% by 2022. Areas such as Salford can offer particularly good value for money and are worth investigating when you search for auction properties in Manchester.
With its universities and the highest retention rate of graduates outside the capital, 60% of its population are aged 25-30. This demographic means that rental properties are in high demand and so makes the purchase of properties in Manchester a golden opportunity.
One of the main advantages of buying houses sold at auction is that the guide price supplied by the auction house can be much lower than estate agent quotes. Having said that, you should allow some leeway when setting up your auction property financing. The guide price is the auctioneer’s starting price. Rival bidders can push up the price so you should make allowances for this when deciding on a budget.
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Property Prices In Manchester
Every three months the ONS publishes the UK house price index and in March 2020 the index showed an increase of 2.2% over the previous year. In the North West of England the rise was higher and stood at 3.4% and in the city of Manchester it was higher still at 4%.
The average price for a property in Manchester is £209,506. Most of the properties sold in the last year were semi-detached houses and these averaged at £233,450. Prices for flats were an average of £189,406 and for terraced homes the figure is £174,639. Auction properties in Manchester sold for less than these averages.
Where Should You Look For Auction Properties In Manchester?
Manchester is a large conurbation so there is a wide choice when it comes to choosing an area to buy. Some areas have higher prices and others are better for investment purposes. Whether you are moving to Manchester or buying to make an investment you can find a few promising areas listed below.
Salford Quays (M50)
Previously the site of Manchester Docks, Salford Quays is very in-demand as a residential area. Home to the Lowry Gallery and the Imperial War Museum, Salford Quays is also the location of MediaCityUK, a centre for creative industries. Many of the properties in this area are flats but there is also a good selection of mews houses and terraced town houses. Prices can be high but you can still get a 2-bedroom apartment with a starting price of around £120,000.
On the north banks of the Mersey River and just 4.5 miles from the city centre, Didsbury is a pretty town with a large open park, a clock tower and its own botanical gardens. Close to junction 5 of the M60, Disbury has excellent transport links with buses, railway routes and the metro tram link. Detached homes in Didsbury can cost upwards of £2.5 million. A 1-bedroom apartment in a Victorian house can start at £160,000. Supply of homes is low so prices in this prestigious area are always higher.
Castlefield was originally the site of a Roman fort. It is a conservation area and is less than a mile from Manchester city centre. A confluence of canals surrounds Castlefield and there are some beautiful landmarks including the bridges over the Bridgwater Canal. Regeneration work has made Castlefield very popular and this can be reflected in property prices. However, there are some good auction bargains. A 2-bedroom waterside view apartment with a balcony has a guide price of £155,000 and could bring in an income of £950 per calendar month in rental.
A predominately residential area, Levenshulme is one of the up and coming areas of Manchester. There is a good mix of bars, restaurants and a regular Saturday market. Many of the houses in Levenshulme are the typical two-up,two-down terraced properties built in the late 19th century. Recently some of the back alleys have been gated making them safer for residents. A 2-bedroom end of terrace house can start with a guide price of £115,000. First time buyers may be attracted to the cost of a 1-bedroom apartment in a purpose built block which can start at around £95,000.
Three miles south west of the city centre is Chorlton-Cum-Hardy, another part of Manchester that has been regenerated. Buses to the city centre are operated by Stagecoach Manchester and there is also a metrolink. A 1-bedroom apartment can cost around £73,000. Houses and flats sold by auction are cheaper and sometimes unusual. Current listings in Chorlton include a 1-bedroom student home in a multiple occupation building. This starts with a guide price of £4,000. Similar properties could prove to be an excellent investment as student rentals.
What Type Of Auction Property In Manchester Should You Look For?
Properties sold at auction are diverse so you can find commercial, industrial, residential and buy-to-let opportunities in Manchester. Choosing a good location is important whether you are planning to live in the property or intend to run a business.
Commercial Properties For Auction In Manchester
The booming property market in Manchester has created a demand for commercial properties. You can find pubs, retail shops with accommodation and offices all of which can bring in a good income from rental. In addition, there are industrial units situated on the outskirts of the city with free parking.
Residential Auction Property In Manchester
There is no shortage of residential auction property in Manchester. Whether you want a large house or a small flat you will be able to find a good selection. A 1-bedroom ground-floor maisonette can start with a price as low as £20,000. Guide price for a 3-bedroom terraced house starts at £45,000.
Buy-To-Let Auction Property In Manchester
The property market in Manchester is growing and purchasing a buy-to-let auction property could bring in a good annual income. You could expect to get £535 per calendar month for a 1-bedroom flat and £900 pcm for a 3-bedroom apartment in a place like Salford Quays. The forecast for rental growth in Manchester is the highest in the UK.
Five Reasons To Buy Auction Properties In Manchester
1. Booming Manchester Property Market
House prices in Manchester have doubled in the last 20 years making this one of the most booming property markets in the UK. An influx of businesses and a growing population mean the local economy is thriving. Add to that the demand for rentals and it is easy to see why investing in auction properties in Manchester is a good idea.
2. Manchester Is A Well Connected City
Situated in the centre of the UK, Manchester is one of the most well connected cities in the world. You can travel around the city using the metrolink or buses and to anywhere else in the UK by rail, road or air.
3. Manchester Has A Growing Population
The population of Manchester is growing and this is creating a demand for properties. Half of the top businesses in the North West are located in Manchester including many foreign investors. Whether you want to buy an auction property to rent out or intend to invest in commercial property, Manchester is an excellent choice.
4. A Flagship City Of The Northern Powerhouse
The UK’s third busiest airport is situated in Manchester. Along with the modern metro system and the proposed HS2 link, plus easy access to central motorways, the city has become a flagship of the Northern Powerhouse. Add in the large student population and Manchester is one of the most attractive cities for property investment.
5. Culture And Shopping in Manchester
In Manchester you can shop until you drop with a wide range of household name brands and plenty of individual boutique retail outlets. The city is a haven for museums and art galleries and attracts millions of visitors each year. Manchester has a nightlife that caters for all tastes including traditional pubs and world renowned restaurants.
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How to Find an Auction Property in Manchester
The best way to get an overview of the Manchester auction property market is through the internet. Visit the websites of both London-based and local auction houses. They include key information about how much previous houses sold at auction have gone for as well as guide prices and specs of upcoming lots.
You will need to invest some time and money in paying a visit to the city for some on-the-spot research. There is only a certain amount of information to be gleaned online. Travel around the city to get a feel for it and its different neighbourhoods. If the purchase is for your own home, draw up a list of which facilities are deal-breakers. For buy-to-let properties, you might be more flexible in what you expect.
Once you have this first-hand knowledge, you are ready to narrow down your options. Many auction houses have search parameters which allow you to choose what exactly you are looking for in terms of location, price, number of bedrooms, etc. Refining your search in this way will leave you with fewer choices.
Once you are left with a handful of properties, they need to be looked at in greater depth. You should attend one of the fixed-time viewings through the auction house or arrange a private viewing if the vendor is agreeable. If the property has sitting tenants, you would have to arrange a viewing with them.
On your first visit, take a pad to note down your general impressions. It might be a good idea to be accompanied by an expert, such as a builder, who might be able to point out any underlying problems which are not immediately apparent.
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Preparations in the Lead Up to the Property Auction
Once you have made a decision about which auction property to buy, speed is of the essence. From the publication of the catalogue listing properties put up for auction until their sale, you only have about 3-4 weeks to get everything done.
You are not legally obliged to carry out a survey when buying a property at auction. However, it is highly recommended as it might pinpoint major issues which could end up costing you a fortune to rectify.
Popular Manchester Property Auction Questions
Where can I find auction properties in Manchester?
You can find property for sale by auction in Manchester by contacting local Manchester property auction houses and explaining in advance what you are looking for. Most auctions have a catalogue of all the auction properties in Manchester which they intend to sell on a monthly basis. These catalogues will give you a good idea of the kind of properties available in the city of Manchester.
How much are auction properties in Manchester?
Manchester property auctions tend to be better value than areas in southern England and, coupled with a fairly high annual rental return, can prove to be great value for money. In recent years there has been a surge in interest in the Manchester area amongst property investors, with auction properties in Manchester high on the list of property investments.
Are Manchester property auctions good value for money?
Buying an auction property in Manchester can be one of the most prudent methods of starting your property portfolio. With a shortage of viable rental properties around the city, attending a Manchester property auction, whether online or in person, can be an eye-opening experience for any budding property owner. Contact your local auction house and find out about upcoming property auctions in Manchester.
Which Areas Are Best To Find Auction Properties In Manchester?
Castlefield is one of the most sought after places to buy and has many old brick houses on the canals. Salford Quay is another excellent choice and this is well connected to the city centre.
Can I Buy Repossessed Properties At Auction In Manchester?
Yes repossessed properties are available in Manchester and these may be listed on specialist websites. Repossessed properties are also sold by banks and finance companies and each will have a database of available properties.
Exercise Due Diligence Before Any Property Auction
You must also exercise due diligence when it comes to any legal issues or possible restrictive terms and conditions regarding the property sale. Legal packs can be downloaded online and need to be reviewed by your solicitor. This should be done before the auction.
Once you make the winning bid, you cannot change your mind without forfeiting your 10% deposit and possibly being sued by the vendor. It may also be prudent to use a Manchester based solicitor who is familiar with the area.
Mortgages for auction properties are available but you should check with your lender first and any exemptions. You can apply for a MIP beforehand and make the official mortgage application after you have made the winning bid. However, remember that you only have about 28 days to pay the balance outstanding on the property otherwise you lose both the property and the deposit.
How to Bid for Auction Properties in Manchester
You can bid in person, by phone, by proxy or some auctions are held exclusively online. You should have drawn up a budget so you know the maximum bid you can afford. When working this out, don’t forget to factor in all the associated costs of buying property such as stamp duty and the fees to the auction house.
Don’t be tempted to bid over this sum however much you have fallen in love with the house. This mistake might jeopardise your purchase, your financial situation and even your credit rating.
Be philosophical if you are outbid. Your dream home is out there, and you might be lucky the next time. Apart from meticulous preparation and organisation, buying auction properties also requires nerves of steel and patience. This is true for Manchester property auctions as it is for the rest of the UK.
Before bidding on auction properties in Manchester it may be wise to attend a real property auction in person. This will allow you to see how auction properties in Manchester are sold and all that is involved with a live auction process.
Buying a property at auction is not for everyone. As well as the benefits, you should also weigh up the risks and pitfalls before going ahead. If you have decided upon reflection that it suits your personality and your personal circumstances, you are ready to begin your preparations.