Property investors are increasingly widening their search beyond traditional buy-to-let opportunities, with stronger regional yields and larger residential properties attracting growing attention, according to the latest Property Auction Insights report from Essential Information Group (EIG).
The report suggests that while higher interest rates and the introduction of the Renters’ Rights Act have changed investor behaviour, auction buyers remain active and increasingly focused on income generation, value creation and alternative investment strategies.
EIG’s analysis found that Scotland delivered the highest average auction yield during 2025-26 at 14.4%, followed by Northern Ireland at 13.0% and Wales at 12.1%.
By comparison, London returned an average yield of 7.1%, highlighting the growing appeal of regional markets for income-focused investors.
EASY ACCESS
The report notes that the growth of online and livestream auctions has made it easier for investors to access opportunities nationwide, reducing the need to focus solely on local markets.
At the same time, EIG found growing interest in larger residential properties as landlords reassess traditional buy-to-let models following the implementation of the Renters’ Rights Act.
Sales of four-bedroom properties have risen from 858 in 2021-22 to more than 1,400 annually over the last three years, while five-bedroom property sales have increased from 225 to almost 400 over the same period.
HMO OPPORTUNITIES
According to EIG, investors are increasingly attracted by the potential to subdivide larger homes into multiple dwellings, subject to planning permission and building regulations, creating several income streams from a single acquisition.
The report also examined the relationship between guide prices and final sale prices, finding that around half of all residential auction properties continue to sell within 10% of their guide price.
However, the proportion of houses achieving more than 30% above guide has fallen from 27% in 2021-22 to 19% in 2025-26, suggesting buyers are becoming more disciplined and selective.
EIG say the findings point to a market that is becoming increasingly strategic, with investors focusing less on headline pricing and more on income potential, flexibility and long-term value creation.
DISCIPLINED INVESTORS
Stuart Collar-Brown (main picture, inset), NAVA Propertymark President, says: “These figures demonstrate that the auction market continues to evolve in response to changing economic conditions and investor priorities.
“While London remains an important market, the data shows that many buyers are increasingly prepared to look further afield in search of stronger yields and better value, particularly in regions where income returns remain significantly higher than those available in the capital.
“What is particularly striking is the growing level of discipline among auction buyers. The reduction in the number of properties achieving substantial premiums above guide price suggests that purchasers are undertaking more due diligence and making increasingly calculated decisions about value.
“Demand remains strong for well-priced and well-presented opportunities, but buyers are becoming more selective about where they deploy their capital.”
ALTERNATIVE INVESTMENT STRATEGIES
And he adds: “We are also seeing auctions attract a broader range of sellers and buyers than ever before. While investors remain a key part of the market, auctions are increasingly being used by those seeking speed, certainty and transparency of sale.
“At the same time, changing legislation and evolving market conditions are encouraging buyers to explore alternative investment strategies, including larger properties with asset management or development potential.
“Perhaps the clearest message from this report is that activity remains healthy, but success increasingly depends on understanding the underlying opportunity rather than simply chasing headline yields or guide prices. Buyers are still prepared to compete strongly for the right property, but they are doing so with greater scrutiny and a clearer focus on long-term value.”
