Network Auctions' sale on May 1st saw strong signs of improved sentiment in both the residential development sector and in commercial investment.

Toby Limbrick, Managing Director at Network Auctions, said: “Residential sales by auction have been strong for some time but it was noticeable that there was much stronger positive sentiment being shown in regards residential development opportunities at our latest auction.

Two lots in particular, Lot 12 a development site in Hemel Hempstead and Lot 17, a development site in Romford, achieved £387,000 and £690,000 respectively, both prices well above reserve and, in the case of the Romford site which has planning for apartments, a clear sign of growing confidence from both developers and lenders on proceeding with such a scheme.”

The auction was also noticeable for the sale of a commercial investment lot in Scunthorpe which attracted huge interest as it was listed with a disclosed reserve of just £1.

With a number of bidders in the room and on the telephone, the lot eventually sold for £87,000, some 87,000 times the reserve figure.

Toby Limbrick added: “The Scunthorpe commercial lot attracted considerable interest despite having been available in the open market prior to auction for some time. Clearly the disclosed reserve of £1 attracted many but the volume of bidding demonstrated that there is a growing interest in commercial investments.”

Overall the sale achieved a sales success rate of 70% and total sales in excess of £3million.