The rise in repossessions in the UK is likely to be a boon for auction houses, according to a leading Wirral conveyancer.

Daniel Stear, of Kirwans Solicitors, believes that the opportunities for buyers looking for bargains may soon be plentiful, with recent Hometrack statistics indicating that repossessions by banks might reach 70,000 by the end of 2009.

He said: “This represents a good opportunity for buyers to get their hands on a property at a competitive price, or for property investors to lay their hands on a buy-to-let property with a view to take advantage of a healthy rental market.”

A study by Paragon Mortgages has shown that the average yield across a landlord’s portfolio now stands at 6.1 per cent, up from 5.7 per cent in the third quarter. This is expected to rise to 6.3 per cent because of rising rent levels and low house prices.

Paragon’s figures come after UK letting agent Your Move reported that rental demand in December 2008 had seen a 63 per cent annual increase.

Anticipating a surge in interest in property auctions from buyers and investors, Daniel Stear added that full research is essential, for both experienced auction attendees and first timers.

He said: “It is not uncommon for a property to appear to be a good deal in the catalogue, only for problems with the legal title or with the property itself to cause regrets at a later date.

“Remember, if your bid is successful at auction then you will be entering into a legally binding contract so it is important to make sure that you have thoroughly researched the properties that you are interested in before you make your bid.

“It would be wise to for a solicitor to look over the legal paperwork for you before the auction. Inspecting the property is also essential, as is obtaining a survey. You will need to have funds ready on the day of the auction to put down a 10% deposit and you will need to have access to the remaining balance in order to comply with the deadline to complete the purchase, which is usually 28 days.

“Pay particular attention to the terms of the auction agreement and again, I would suggest that you arrange for a solicitor to look over these before the auction. In addition to the purchase price you may have to pay associated legal costs on behalf of the seller, such terms would be included in the terms of the agreement so it is wise to make yourself aware of them before you have committed to purchase the property.”