Art connoisseur in the trenches for IAVI

IAVIPresidentThe IAVI's new president takes over at a time when the institute has a lot on its plate, writes Jane Suiter

This afternoon James O'Halloran will become the third managing director of fine art auctioneers James Adams to become the president of the Irish Auctioneers and Valuers Institute (IAVI).

Unlike his predecessors, however, Mr O'Halloran has never swung a gavel at a property auction. He says that one reason for his appointment as a fine art specialist to an institute dominated by property auctioneers is to demonstrate the broad church that is the IAVI. Yet the tall, well-dressed art connoisseur, who is widely regarded as having impeccable taste, will be on the front line for the auctioneers when the review committee set up by the Government to examine auctioneer practices reports in a couple of weeks.

The public will be most interested in what, if anything, the group has to say about the ever-vexed issues of misleading guide prices on auction properties. But Mr O'Halloran does not believe that this will be addressed in the report.

"It is all being held in camera and we were asked not to publish our submission, but it is very hard to see that a lot can be done. It is a very complex area but, at the end of the day, the auctioneer works for the seller and it is his job to get the highest possible price. It comes down to what the seller wants."

He dismisses a suggestion that the IAVI has lost the confidence of the public by not being more proactive on this issue.

"The guide price does tend to reflect what the reserve is going to be. But it is very tricky to balance the competing interests - on the one hand we want to be as open and transparent as possible but, on the other hand, too much clarity would not work so well in terms of getting the highest price." Auctioneers, says Mr O'Halloran, are in the invidious position of getting the blame for many practices which are not their responsibility.

"Auctioneers get blamed for the actions of the sellers, such as gazumping, where a bid is accepted and later turned down in favour of a higher bid and gazundering, where a buyer withdraws after having had his bid accepted. The agent is simply caught in the middle. It will be interesting to see what the review group comes up with in this area, if anything. In my personal view it would be no harm to see these sorts of practices put on a statuary footing."

However, his main concern is with the nuts and bolts of the recommendations, particularly the need for regulation. This is a drum the IAVI has been beating for many years but Mr O'Halloran is still insistent that the licensing system needs a radical change.

"We need a centralised system with a single set of standards to license all auctioneers as well as an independent regulator who can enforce a code of conduct."

He worries that it is only a matter of time before an auctioneer brings the profession into disrepute by absconding with clients' monies.

"There are quite a few fly-by-night individuals operating out of their cars with only a mobile phone. To be a member of the IAVI you need an honours degree but others can still set themselves up as agents with absolutely no education, qualifications or experience. That is a recipe for disaster."

Quite apart from the ongoing criticism on guide prices, Mr O'Halloran has an ongoing membership issue to deal with. The IAVI has been weakened by the increasing number of estate agents subscribing to both the Society of Chartered Surveyors and the IAVI, with up to 200 now members of both organisations. A formal merger is not yet on the cards but it will be necessary to forge closer links between the two bodies.

The same is not true of the Institute of Professional Auctioneers and Valuers which Mr O'Halloran dismisses immediately. "There is simply too big a gap in the educational qualifications demanded by both organisations to even consider a merger."

It is not just property which has soared in value in recent years, art too has done very well. There are thousands more people interested in the market now than 20 years ago with all sorts of people from wealthy tech people to traditional collectors like lawyers, medics, property developers and general business people in the market.

"Art is now a really popular way to express your cultural identity. People like to be seen to have and to enjoy art. It is not uncommon to see a Habitat side table with a picture worth €30,000 or €40,000 hanging above it."

Yet he admits it can still be a struggle to persuade people to sell in Dublin as there is still a certain inverted snobbishness about "sending to London".

Mr O'Halloran insists that there is a level - probably round €100,000 to €150,000 - below which it is not worth the extra time and expense in going to London. The most popular trend at the moment is for artists who were in their heyday in the 1940s to the mid 1960s.

So who does Mr O'Halloran particularly like? Cecil King, he says, is really popular with his stark minimalist works looking really good in floating frames, particularly in a modern environment. But Patrick Hickey and Camille Souter also have enormous appeal.

The one younger artist Mr O'Halloran is particularly keen on is Donald Teskey, who he says is doing really, really well with his abstract Irish landscapes.

Apart from art, many investors are putting their money into foreign property with increasing numbers of agents now offering opportunities across Europe. Mr O'Halloran says he can see the appeal with prices in Ireland having risen so strongly. But he cautions that investing in some of the Eastern European markets could be more akin to gambling.

"I would personally be very cautious and I do not think I would be relying too much on rental income. You also need to ensure that you are getting really top quality advice on issues like tax and inheritance." Personally, he would be happier to buy in France.

Unsurprisingly, he is unwilling to predict anything but an upward trajectory for house prices. "So long as interest rates do not go up dramatically I believe continued migration will underpin the market."

In particular, he says that period homes in good locations will continue to do well but he is even reasonably bullish about suburban apartments.

"They seem to suit a lot of young buyers who seem to be getting involved at younger and younger ages. I cannot see it crumbling but I hope it will be affordable when my eldest, who is now 15, first looks for her own place."