Vacant properties are becoming more popular for auction room investors, due to the number of repossessions rising by almost a fifth.

The Essential Information Group (EIG), which provides details of every UK property that goes to auction, reports the number of repossessions going to auction this June is up 45% compared to June 2010.

In May 2011, the overall lots sold increased by 30% compared with the previous year whilst over 20% of all residential lots offered at property auctions are repossessions.

Chris Baguley, director at Auction Finance Limited, who provides investors with fast funding for auction purchases, said: “A lot of good stock has come on the market recently. You only need to take a look at the sales catalogues and the auction rooms where transactions are taking place.

“Roughly a quarter of all repossessions end up in the auction room – if you have never bought at auction before – now is the time, whether you’re looking to get on the buy-to-let property ladder or you are a seasoned investor.

“Where repossessed stock is coming to the market auctions are the answer – as a sale can be secured on the day of the auction. Investor opportunities are ripe for the taking – these properties can generate a good yield on rental income.”