Auction sale secured above guide price for restricted council property

The Challenge

A local council needed to dispose of a detached two-bedroom property which was subject to a Local Occupancy Clause. This covenant, designed to preserve housing for local needs rather than second-home buyers or external investors, typically suppresses property values by 20-25% compared to unrestricted properties. The restricted buyer pool created significant marketing challenges, as conventional estate agency approaches would struggle to reach the limited qualifying audience. The council required a disposal method that would achieve best value whilst managing the complexity of the occupancy restriction.

Our Approach

Working through our specialist auction team, we developed a targeted marketing strategy focused on reaching local residents and qualifying buyers within the target area. The auction format created competitive tension amongst the limited but motivated buyer pool whilst providing the council with a sale within the agreed timescales.

The Outcome

The property sold at auction for £55,000 above the guide price, demonstrating that despite the occupancy restriction, strong demand existed within the qualifying local buyer market. The competitive bidding process delivered exceptional value for the council whilst the auction's legal framework ensured rapid completion with minimal transaction risk. The successful sale proved that properties with local occupancy clauses can achieve premium pricing when marketed effectively to the right audience.