When buying unmodernised houses at auction you must do your homework, he stresses. "We recommend getting a survey of the property you want to buy. Houses come in varying states of disrepair. Some require cosmetic improvements and may only need a sash cord replacing. But others may have rampant dry rot."
When instructing a surveyor, request a breakdown of likely repair costs. Keep in mind that a full structural survey could easily cost £800.
John Weatherall of the firm Andrews and Robertson, which specialises in handsome period houses mainly in south-east and south-west London, says: "Young gentrifiers are increasingly on the prowl, but buyers still tend to be old hands: people purchasing their third or fourth home who are not afraid of builders. Most put down a deposit of at least 30 per cent."
It is also important to have your finance lined up and be aware of the maximum loan a mortgage lender will grant. The valuation by a lender may be less than the hammer price, or bidding may propel the final price over the guide price. Both will leave you with a shortfall to find. Remember, if you make a successful bid, you are contractually obliged to complete the purchase.
Because of high prices, more young families are buying partvacant homes. Houses with a sitting tenant regularly appear at auction and typically are about 30 per cent cheaper. "Young couples with small children don't mind sharing a large house with a tenant occupying a couple of rooms or a self-contained flat at the top," says Mooney.
"It can be a way of getting a house in a desirable street for the price of a flat. When the owners are wealthier, they buy out the sitting tenant. But it's a bit of a gamble in terms of the tenant leaving: it could be two years or 20 years - or perhaps never."
