Property Auction Insights

This appears to have played a part in the spike in tenanted properties coming to auction during 2024. Tenanted sales increased by 21.8% year on year in Q2 and 48.4% in Q3, before falling back during 2025. What is particularly interesting is what happened either side of that spike. H1 tenanted sales in 2022, 2023 and 2026 are all at broadly similar levels, suggesting that 2024 was an unusually busy period for tenanted disposals rather than the start of a longer-term upward trend.

Vacant sales, meanwhile, have continued to grow. Some of this will reflect the wider growth we have seen across the auction market, but properties that were previously rented are also likely to have contributed.

Lease length, rising service charges and ground rents can all affect buyer appetite, while cladding, building safety requirements and planned major works can add further complications. In some cases, these issues can also affect mortgageability, reducing the number of buyers able or willing to proceed.

These challenges can make auction an alternative route for sellers. The unconditional nature of a traditional auction sale provides greater certainty once the hammer falls, while the audience can also be different. Investors, developers and cash buyers may be more willing to consider properties requiring refurbishment or with more complicated leases, provided those issues are reflected in the price. Auction does not remove the need for buyers to understand lease terms, service charges or building safety issues, but it can provide a marketplace for stock that may be more difficult to place through conventional channels.

That proportion began to rise during 2025 and reached 27.2% in Q2 2026, its highest point across the period analysed. Flat sales themselves were also 18.1% higher than Q2 2025, showing that the increase in market share is being accompanied by higher transaction volumes rather than simply changes elsewhere in the auction market.

The geographical spread is also interesting. Flat sales increased across 11 of the 13 regions in H1 2026, showing that the trend is not confined to one part of the country. Yorkshire & The Humber recorded the largest percentage increase at 29.0%, closely followed by London at 27.6%. London is particularly significant given the size of its flat market, with more than 200 additional flat sales compared with H1 2025. The South-East Home Counties also recorded growth of 16.9%, with increases seen across the North-West, West Midlands, South-West and a number of other regions.

Price is likely to be another important part of the appeal. Almost half of the flats sold at auction during H1 2026 were below £100,000, with 60.6% selling below £150,000 and 79.2% below £250,000. At the other end of the market, just 4.5% sold for £500,000 or more. This provides buyers with access to stock at relatively accessible price points, particularly where a property needs modernisation or where leasehold or building-related considerations have been reflected in its value.

Importantly, a property being more complicated to buy does not necessarily make it unsuitable as an investment or a home. A flat with a short lease, higher service charge or refurbishment requirement may appeal to a smaller pool of conventional buyers, but at the right price it can still represent an opportunity for someone prepared to take those factors into account. Equally, flats can provide a more affordable route into locations where the cost of buying a house may be considerably higher, broadening their appeal beyond the traditional investor market.