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Landlords drive surge in property auction activity ahead of 2026 reforms


Auction houses closed 2025 on a high, with Propertymark experts reporting strong results despite regulatory uncertainty and cooling sentiment in the wider market. For landlords under pressure from tighter rules, squeezed yields and slower private treaty sales, auctions are increasingly offering the speed, certainty and transparent pricing that traditional routes struggle to match.

Auction activity among landlords

NLandlords drive surge in property auction activity ahead of 2026 reforms Landlord KnowledgeAVA Propertymark president Stuart Collar-Brown (pictured) says 2025 delivered solid momentum, with lots auctioned and funds raised rising by nearly 15% year-on-year. Sellers, he argues, continue to favour auctions for their reliability. Quarterly trends varied – Q1 and Q4 were buoyant, while Q2 proved challenging for sellers seeking ambitious reserve prices.

Collar-Brown notes that the Renters’ Rights Act has pushed many smaller landlords to exit, but the dominant buyers are now larger portfolio landlords less exposed to regulatory shifts. This mirrors recent ONS rental data showing stronger yields in regions such as the North East (+6.4% year-on-year), helping investors offset rising mortgage and compliance costs.

Commercial buyers are also stepping in as residential churn continues. Councils disposing of garage blocks and similar assets generated some standout sales, including a parade of retail premises that achieved £4.7m from a £3.6m guide – one of the most expensive commercial auction lots sold outside the M25 in 2025.

Looking ahead, Collar-Brown expects more refurbishment opportunities and increasing commercial stock to hit the rostrum in 2026.

Auctions secure fast, predictable outcomes

Propertymark’s Richard Worrall describes 2025 as “a strong year” with more clients using auctions to secure fast, predictable outcomes. Prices were “firm rather than inflated”, supported by healthy interest across price brackets. He attributes a slower final quarter to the unusually late Budget and seasonal distractions but remains “very optimistic” for 2026.

One key trend is the surge in end-user buyers – owner-occupiers increasingly turning to auctions for clearer pricing and shorter transaction windows. This shift has narrowed the once investor-heavy landscape, particularly in regions such as Yorkshire and the Midlands where auction activity rose through late 2025, according to UK Finance lending data.

Past president Melfyn Williams highlights several standout results:

  • A terraced house guided at £50,000 sold for £106,000 after attracting over 7,000 page views.
  • A property in Amlwch, Anglesey sold 38.5% above guide, generating 41 bids and around 4,500 online views.
  • He says that correctly priced lots will “continue to perform well” when marketed by experienced auctioneers backed by qualified NAVA Propertymark teams.

Consolidation reshapes the market

Advisory panel member David Leary says 2025 was a year of consolidation, with more flats and converted houses appearing at auction as landlords reassessed portfolios in light of Section 21 changes and the Renters’ Rights Act. Auction stock rose around 4% year-on-year, driven partly by investors deciding to exit while demand remained strong.

Medium-sized auction houses expanded market share and, in some cases, absorbed smaller firms – though competition remains lively, with several new auction houses launching in late 2025.

Panel member Matt Burrows describes the market as “challenging but productive”, citing fewer speculative listings and more probate and asset-management instructions. Despite lower appraisal volumes, well-priced lots drew robust bidder interest, particularly from cash buyers and seasoned investors seeking certainty.

He reports encouraging early signs for 2026: bookings for February auctions are already ahead of last year, supported by steadier pricing expectations and improving market sentiment.

Editor’s view
Auctions are benefiting from the very pressures unsettling the private rented sector. When legislation tightens and timelines stretch, certainty becomes a premium asset – and auctions deliver it. For landlords weighing whether to sell, refinance or restructure portfolios in 2026, the auction room may well offer the clarity that the broader market currently lacks. Is this the year auctions become the default exit route?

Author: Editorial team – UK landlord & buy-to-let news, policy, and finance.
Published: 06 January 2026

Sources: NAVA Propertymark; ONS; UK Finance; Propertymark member commentary
Related reading: Landlord sentiment steady as 66% plan growth despite Budget pressures

 

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