Harringay, Haringey - So Good they Spelt it Twice!
Boroughs 'losing £10million a year as they auction homes off too cheaply'
Today's Standard reports:
Below is a table produced in the print version of the paper:
On the face of it Haringey is by no means the worst offender, if indeed any "offence" at all has been committed. But it would be nice to hear from Haringey on this and I'll ask for a comment so we can hear their side.
Read the whole article at the Standard.....
London councils are losing £10million a year by selling properties through auctions rather than estate agents, new figures show.
Below is a table produced in the print version of the paper:
On the face of it Haringey is by no means the worst offender, if indeed any "offence" at all has been committed. But it would be nice to hear from Haringey on this and I'll ask for a comment so we can hear their side.
Read the whole article at the Standard.....
Replies to This Discussion
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Permalink Reply by Steve Hatch on
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Would have been interesting to get a breakdown; specific area, types of property, number of bedrooms etc.
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Thanks for that Hugh, have now requsted that info, so lets see.
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Received a reply from Haringey Council on this matter:
My question was
I would very much like access to the information regarding what number of council owned property has been sold at property auctions (in the last 12 months), what type of property i.e. house, flat, office, shop, the number of habitable rooms, number of bedrooms, and what the final price achieved for each was.
The response was
The Council has sold two properties at auction in the last year, the details if which are set out below:-
73a Steele Rd, N17 bedroom flat (3 hab rooms)
sold for £99,000 completing 17.12.2008 Strettons Auctions
Garages r/o 97-103 Effingham Rd, N8 8 garages
sold for £111,000 completing 16.3.2009 Strettons Auctions
So there we have it!
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Permalink Reply by Alan Stanton on
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Just as interesting is why these homes were sold; who bought them and who now lives in them; and what work was done to bring them up to, and maintain them at "decent homes" standard.
An old proverb says: "A house is a thief" - meaning there's always something going wrong which needs ever more money spent on repairs. Some people buy homes to live in, but don't have the resources to maintain them. Others intend spending as little as possible and taking the maximum in rents - sometimes by packing in as many tenants as they can; and turning homes into hutches.
We know one result of the latter option - described in HoL but affecting streets across the borough.
Sales of individual street properties at auctions also seems to have been a practice of at least some Registered Social Landlords (Housing Associations). Again it would be interesting to know how many of these homes now have owner-occupiers; how many are rented; and whether the homes are properly maintained and - where rented out - properly managed.
I'm hoping that a HoL member can point me towards the published data.
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I like that proverb Alan, very true in many cases. New position: Rehabilitation case worker.
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Permalink Reply by Clive Carter on
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I think the council has offered some form of explanation on this one; as to whether it stacks up is another matter. In yesterday's Journal:
"A decision to sell a property at auction will be taken if it is considered the property may be difficult to secure a mortgage or finance on, and would therefore be more likely to attract cash-only buyers"
I hold no brief for estate agents, but it seems to me that if the council went to slightly more time and trouble and went about a regular sale, they might achieve a better result for the tax-payer in whose interests they are supposed to work. Presumably, properties dealt with by estate agents attract both finance-requiring buyers and cash-only buyers, increasing the competition and therefore the sale price.
It seems that the council seems now to be holding itself out as an expert in mortgage finance by pre-judging the marketplace. I'd be interested to hear what comment Steve the estate agent has on the council's explanation. - Attachments:
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I completely disagree with their approach Clive.
I think they should adopt the same process that many of the large property management type organisations use. These companies typically work on behalf of the big mortgage lenders. They often deal with properties that get repossessed (obviously not a nice situation to be in) but, they have a duty to the person who has been repossessed, to obtain as high a figure as possible in order to minimise their losses (this could be likened to the duty the council have to the Taxpayer).
The asset management, or property management company, instructs the selected Estate Agent for a set period of time… if the property does not sell within a reasonable timescale (which is unusual), then it gets considered for auction.
These companies have recently started charging agents to qualify to deal with their properties(providing they meet the required standard)… This is another potential stream of income that Haringey council could tap into, in the interest of the taxpayer).
Regardless of how an agent is instructed, the agents role is to attract the best possible price from any purchaser (cash buyer, or mortgage dependent) The agent would have an agreed number of weeks to achieve this, whereas a property auction is generally restricted to the best price on the day!
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Thanks, Steve, informative. I have bought stuff at auctions (not property) before and as you say, the total demand is simply that which happens to be represented on that day and hour. Often its because the vendor for whatever reason wants cash the same day and no further complication. Which is not the position of the council which has a large property bank and is often disposing of property.
The other less savoury aspect is that knowledgeable people in the council could give a nod to associates where they know that property is likely to be selling at a below market price, at a particular place on a particular day.
Councillor Alan Stanton has raised questions on his blog about what appears to be this kind of activity in connection with the Welborne Centre (Tottenham), that I visited recently.
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