One of the good things about the festive period is that it allows us to watch daytime television without any shame.
And one of my guilty pleasures is Homes Under The Hammer, which is based on properties bought at auction.
Being a short-term lender, we have strong links with a number of auction houses, as this type of purchasing process can often benefit from the speed and adaptable nature of short-term finance.
Buying property at auction is not a new process. It has been around for many years, mainly in the domain of professional investors, landlords and developers.
This was later added to by the legions of amateur investors during the boom years.
Although the mortgage market does not favour these amateur landlords at present, the enticement of a bargain continues to lure those looking to renovate a rundown property to sell or as a buy-to-let investment.
Indeed, according to a recent survey from the National Association of Valuers and Auctioneers, the number of residential properties sold at auction continues to grow.
In November 2010, 1,838 residential properties were offered at auction – a 12% increase on 2009.
With savings rates continuing to languish at low levels, it is little wonder that despite some property price uncertainty, investors are still drawn to the auction process. And there are few signs that this momentum will let up soon.
