A busy room at Strettons last auction of the year at the London Connaught Rooms venue in Holborn ended on a high note with 82% of the lots being sold, raising £10.26m.

Average net yields on the day were 7.2% for commercial investments and 6.9% for residential investments, leaving a realistic average net yield, for properties sold at Stretton auctions during 2013, of 7.5% for commercial and 7% for residential. Average net yields on the day for freehold ground rents with more than 80 years unexpired were at 5.7% showing an annual average of about 4.75%.

On the residential front, Lot 1 - a house in Edmonton N9, let to a regulated tenant, sold for £173,000 against a guide of £140-150,000. Of the several AST investments sold, Lot 47 - a block of 6 flats in Bow E3 producing £90,000pa sold for £900,000 and a house in East Ham E6 let at £19,300pa sold for £250,000, a 7.26% net yield (7.72% gross yield).

Regarding the block of flats in Bow, auctioneer Phillip Waterfiled said: "We had previously sold this around seven years ago. Since then it's been converted into residential use. It's not perhaps the best location but getting a gross yield of around 10% with a good income in an area (Bow) which is fast improving obviously appealed to the buyer."