Auction property sales have surged across England over the past year, driven by buyers seeking faster transactions and turning to bridging finance to secure deals.
Research by specialist lender Octane Capital found that 23,967 properties were sold at auction between the second quarter of 2024 and the first quarter of 2025, up from 22,007 in the previous 12-month period – an 8.9% increase.
The North East led the way with a 14.8% rise in transactions, followed closely by London at 14.7% and the East Midlands at 12.6%. The South West also recorded double-digit growth at 10.6%.
Rising demand has fuelled price growth, with the average property sold under the hammer climbing 4.2% nationally to £177,471. The North West recorded the strongest uplift at 11.5%, followed by London at 11% and Yorkshire and the Humber at 10.1%.
BRIDGING MOMENTUM
Much of the momentum in the auction market has been underpinned by bridging finance, which accounted for 13% of all bridging loan activity over the past year.
Unlike traditional mortgage providers, specialist lenders are able to offer the speed and flexibility needed to complete within the typical 28-day deadline.
Bridging finance has also become essential for buyers targeting properties requiring significant refurbishment or those deemed unmortgageable by mainstream lenders.
IMPROVING LANDSCAPE
Jonathan Samuels, chief executive of Octane Capital, says: “Whilst the property landscape is certainly improving, we’ve seen buyers continue to act with caution as mortgage rates have remained higher than many have become accustomed to.
“This has resulted in many sellers and investors struggling to offload their properties at either the price or pace that is required.
“As a result, many have turned to the auction space in order to push on with their plans for the year and the ability to transact quickly is a major draw in this respect.”
CERTAINTY AND FLEXIBILITY
And he adds: “However, speed is only part of the equation, auctions often present properties that need significant work, or which fall outside the criteria of traditional mortgage lenders.
“This is where bridging finance really comes into its own, giving buyers the certainty and flexibility to secure opportunities that others can’t. We expect this reliance on bridging for auction purchases to grow further as investors continue to seek value in a challenging market.”
