According to figures from Essential Information Group (EiG), the rise in repossessed properties coming up for auction has reached a total of 3,102 in the first half of 2008, compared to just 799 in 2005.
According to EiG figures, it's London and the Home Counties of Hertfordshire, Buckinghamshire and Berkshire that are seeing the most action in the auction room.
Allsop Residential Auctions recently held a two day auction which saw repossessed properties accounting for around 60 per cent of the total 495 lots that were on offer. Mortgage lenders accounted for the large majority of repossessed lots.
David Sandeman, Managing Director of EiG, comments: "Repossessions now make up over 20 per cent of the properties on sale at auction."
"Banks and lenders offering repossessed properties are often keen to secure a sale on the day and are less worried about achieving a high price."
"As a result these properties are selling extremely well compared to other lots, with investors bagging some excellent deals. New build flats are also selling at huge discounts."
David Sandeman notes that vendors have to be realistic about their pricing: "The fortunes of the buoyant auction market turned in the last quarter of 2007."
"Consequently post auction deals are increasingly being agreed on unsold lots, with investors offering just above the reserve price."
