Edward Swindells of Swindells Auctioneers has predicted that the end of the year will see a sharp increase in the volume of repossessed properties being sold at auction. The anticipated rise has been attributed to a seasonal trend whereby asset managers attempt to quickly sell any property that has failed to attract a buyer on the open market earlier in the year.

Swindells has predicted that this increase in ‘lower value’ stock will be responsible for an overall reduction in average property values, which may be mistaken for a general dip or ‘cooling off’ in the market.

The auctioneer has further suggested that the increase will also attract a large number of so called ‘flipper’ investors who will purchase these properties in bulk with a view to selling them again at auction in the spring of 2015.

However, Swindells has warned that adopting this strategy may not deliver the same level of profit as in previous years in the event of a possible interest rate hike.

Swindells says: “Contrary to popular belief, we still think that interest rates could rise slightly before the end of the year as consumers embark on their Christmas spending sprees and the BoE has more confidence in the overall economy. Therefore, investors looking to turn a fast profit from low value property bought at auction over the next few months may have to hold onto it for longer than expected.”