Us auction to hit UK

US property auction giant Real Estate Disposition Company (REDC) is on its way to the UK. The company, which specialises in foreclosure properties, has been talking to various UK mortgage lenders about selling their foreclosed properties...

When it arrives in the UK, REDC will indicate that the properties it is selling are repossessed properties. There are some concerns in the UK that the market will be flooded by these properties at auction, and further devalue property prices.

A rush of auction properties in a particular area could reduce the value of local homes and further destabilise the property market in the region.

One concern for the US property market is that current buyers of repossession properties will flip them back into the market when it starts to recover, and the very act of doing that will impede the recovery from which they are trying to benefit. They will effectively prolong the bottom of the market.

Obviously, if that can happen in the US, then it can happen in the UK, and the arrival of REDC will add to the likelihood.

By all accounts REDC's auctions are raucous affairs, with shouting and rapid-fire sales. Whistles are blown as sales move around the auction room. Some Brits may well be overwhelmed by the event!

Nevertheless, they are likely to make a big impact when they arrive in the UK, and new property investors will be keen to make a killing by buying low and selling - a little later - higher.

Source: www.hotproperty.co.uk