Homes sold at auction are achieving record sums above the guide amounts set by valuers as lower property prices have brought about a bidding war among bargain-hunters.

Countrywide sold a two-bedroom cottage near Truro in Cornwall for 109% above its guide price of £60,000 in September, almost beating its previous record set in March of 110% above the guide price of a two-bedroom bungalow, also in Cornwall.

Allsop, another auctioneer, has also achieved its highest margins above the guide in recent months, as confidence grows that the market has bottomed out. Housing economists believe that house prices were at their lowest in March and April, before beginning their recent climb.

The Times