Property Auction Insights

Focus On: The Guide Price Myth

Recent headlines have highlighted growing buyer caution across the housing market, with purchasers becoming more selective and less willing to overpay. Auctions provide a useful way of measuring this behaviour because every sale results in a transparent transaction price. However, it is important to understand what a guide price actually represents. Unlike an asking price in the private treaty market, a guide price is not intended to predict the final sale price. Instead, it provides an indication of the seller's reserve price, the minimum figure they are willing to accept. Under industry guidelines, the reserve must be set within 10% of a single guide price, or within the guide range where a property is marketed with a price band.

For the purposes of this analysis, where guide ranges were used, the midpoint of the range was taken as the guide price.

These findings also serve as a reminder that guide prices are not fixed. They can be revised throughout the marketing period, both upwards and downwards, to reflect changes in a seller's reserve price or to generate additional interest where demand has been weaker than expected. A guide price should therefore never be viewed in isolation and buyers should always carry out their own due diligence and assess the property's underlying value rather than focusing solely on the advertised guide. While some properties will ultimately sell at substantial premiums, particularly where competition is strong, others may have been repriced during marketing to better reflect market sentiment. In short, if a guide price appears too good to be true, it often warrants a closer look rather than an immediate assumption of value.

Focus on: How Far Would You Go for a Better Yield?

Property investors are often encouraged to focus on areas they know best. Local knowledge can be invaluable when assessing property values, tenant demand and long-term prospects. However, auction data suggests that investors prepared to widen their search beyond their immediate area may be able to access significantly stronger income returns.

The rise of online and livestream auctions has made it easier than ever for investors to access opportunities nationwide. Geographic barriers that once limited participation have largely disappeared, allowing buyers to research, inspect and bid on properties across the country without needing to attend a physical auction. As a result, investors are no longer restricted to opportunities within commuting distance of home and can increasingly target locations that align with their investment objectives rather than their postcode.

However, higher yields do not automatically translate into better investments. Buying further afield introduces additional considerations that can quickly erode headline returns. Property management costs may be higher where investors do not have established local contacts. Maintenance issues can be more difficult to oversee, while limited knowledge of local rental markets may increase the risk of void periods or unexpected expenditure. Investors also need to consider factors such as employment growth, tenant demand, future regeneration and exit opportunities alongside any projected income return.

The data demonstrates that some of the strongest income-producing opportunities continue to be found outside the UK's traditional property hotspots. For investors willing to undertake the necessary research, looking beyond their local market can open the door to a much wider range of opportunities. The challenge is determining whether the additional yield on offer is sufficient to compensate for the additional complexity that often comes with investing further from home.

Focus on: What’s Next After Buy-to-Let

The implementation of the Renters' Rights Act on 1 May 2026 has prompted many landlords to reassess their investment strategies. While some have chosen to reduce their exposure to the private rented sector altogether, others are looking for alternative ways to generate returns from residential property. One approach attracting growing attention is the acquisition of larger homes with the potential for subdivision into multiple dwellings.

Auction data suggests there is an increasing pool of stock that could support this type of strategy. Sales of four-bedroom properties have risen from 858 in 2021-22 to more than 1,400 in each of the last three years, while transactions involving five-bedroom homes have increased from 225 to almost 400 over the same period. Larger properties remain a consistent feature of the auction market, with six, seven and even ten-bedroom-plus homes regularly coming under the hammer. Despite rising transaction volumes, average sale prices have remained relatively stable. Four-bedroom properties sold for an average of £277,271 in 2025-26, compared with £285,041 five years earlier, while five-bedroom properties averaged £366,629. This combination of availability and pricing is creating opportunities for investors willing to take a more active approach to property ownership.

For many buyers, the attraction lies in the ability to create multiple assets from a single acquisition. Subject to planning permission and building regulations, a larger house may be converted into flats, maisonettes or other self-contained units. Rather than relying on a single tenancy and a single rental income stream, investors can create multiple income-producing properties within the same building. The strategy can also provide greater flexibility. Some investors may choose to retain all units as long-term investments, while others may sell individual dwellings to release capital while continuing to benefit from the remainder of the scheme.

The potential advantages do not stop there. Where separate leasehold titles are created, investors may choose to retain the freehold interest in the building. While leasehold reform continues to evolve, ownership of the freehold can still provide an additional layer of long-term value through building management, future lease extensions and other rights associated with the property. For some investors, this creates an opportunity to build multiple income streams from a single project rather than relying solely on rental receipts.

Of course, subdivision is not without risk. Planning constraints, conversion costs, financing arrangements and local demand all need careful consideration before a purchase is made. Not every large property is suitable for conversion, and not every location will support the values needed to justify the investment. Investors also need to understand the practical challenges of managing a more complex asset and ensure that projected returns are based on realistic assumptions rather than best-case scenarios.

As the property market continues to adapt to the post-Renters' Rights landscape, investors are increasingly looking beyond traditional buy-to-let models. The auction market's growing supply of larger residential properties suggests there may be opportunities for those willing to explore alternative strategies. For the right buyer, a large family home may represent more than a single property purchase. It could be the starting point for multiple assets, multiple income streams and a very different approach to residential investment.

Regional Data

Every quarter we will be including regional data from the past five years, including the number of lots sold and the average sale price, and now average yield too. This allows you to track what is happening across the country, to spot trends, and see how changes in the wider market may be affecting auctions.

The data in these charts consist of all auction sales on a quarterly basis, including individual single lot sales.

• Sales
• Yields

Data for all unconditional auction sales.

Data for all unconditional auction sales where there is an income.