Property auctioneers have reported a strong start to 2026, but rising geopolitical tensions and domestic pressures are beginning to weigh on sentiment as the year progresses.
After a buoyant end to 2025, the auction sector entered the new year with momentum. Data from Essential Information Group (EiG) shows that 2,162 lots were offered in January, a 47.3% rise year-on-year, followed by 4,534 lots in February, up 6.7% annually, with sales also increasing by 6.2%.
However, despite this positive start, uncertainty is building. Ongoing global unrest, inflationary pressures and questions over the future path of interest rates are creating a more cautious backdrop for buyers and sellers alike.
The impending introduction of the Renters’ Rights Act is also adding complexity, particularly for landlords and investors reassessing their strategies ahead of significant regulatory change.
GROWING DISCONNECT
Auctioneers say market conditions are increasingly shaping behaviour. While valuation levels remain high, there is a growing disconnect between seller expectations and current market pricing, limiting the conversion of appraisals into listings.
At the same time, more conservative pricing is driving stronger results where assets are brought to market, with higher success rates reported in the first quarter compared to last year.
Investor appetite is also shifting. Residential investment stock is facing pressure as landlords demand higher yields, while commercial property is seeing increased interest, supported by the appeal of longer, more secure lease structures.
CONSERVATIVE PRICING
Stuart Collar-Brown, President of NAVA Propertymark, says: “Valuation levels are at an all-time high, so lots of clients need auction advice. Due to market conditions, these are not converting into listings due to the disparity in outstanding lending vs what we deem is current market value.
“Pricing has therefore been far more conservative compared with 2025, which has led to a higher percentage sold in Q1; 2025 was 71% sold, and 2026 was 88%.
“Vacant residential stock (houses vs flats) is still the most desirable amongst buyers.
“Residential investments are struggling with portfolio landlords expecting far higher yields than before, which is affecting prices and that type of asset coming to market.
“Commercial investments are performing extremely well as more landlords are switching to a longer and more secure lease vs the uncertainty of assured shorthold tenancies and the incoming Renters’ Rights Act.”
CAUTIOUSLY OPTIMISTIC
Matt Burrows, NAVA Propertymark Advisory Panel Board member, adds: “Q1 2026 has started positively, with strong performance across our auctions.
“We have sold approximately 90% of all lots offered, and entry levels have remained steady, which is encouraging given the wider economic backdrop.
“Buyer demand is still evident, as demonstrated by a full room at our most recent auction and competitive bidding on well-priced stock.
“However, there remains clear price sensitivity. Lots that are not positioned competitively are seeing limited interest, which reinforces the importance of realistic pricing in the current market.
“Overall, the outlook is cautiously optimistic. That said, there are several external factors that will need to be monitored closely over the coming quarter, including geopolitical tensions, particularly in Iran, the direction of Bank of England base rates, and the trajectory of inflation. These will all play a role in shaping buyer confidence as we move into Q2.”
MIXED CONFIDENCE
Richard Worrall, Immediate Past President of NAVA Propertymark, says: “Confidence amongst buyers seems mixed at the moment, with a split between those that see current market conditions as an opportunity versus those who are adopting a ‘wait and see’ attitude due to events in the Middle East and the impact on domestic conditions.
“As always, pricing is key to achieving a successful outcome, and those sellers who price accordingly are achieving very positive results.”
RESILIENT MARKET
David Leary, NAVA Propertymark Advisory Panel Board member, adds: “As we approach the second quarter of the year, auctions have shown no let-up in their consistency and growth over the past 12 months, with an almost 6% increase in total raised and a 3% increase in lots offered.
“Having worked in property auctions over the past 30 years, history has shown auctions to have been resilient throughout all adversities, with more opportunities coming to market as properties are sold off quickly, with auctioning providing a far speedier mechanism of sale compared to that of the open market.
“With the Renters’ Rights Act that is coming in on 1 May, investors should be cautious and use trepidation, ensuring that they have not geared up too much for the next few years ahead. As said, auctions have remained highly resilient, and I see no difference in the growing auction sector of the property market going forward.”
Despite the growing list of external risks, the auction sector continues to demonstrate resilience, with steady demand and strong clearance rates where pricing is aligned to market reality.
However, with geopolitical tensions and regulatory change both in play, the coming months are likely to test that momentum.
