Commercial auction activity proved more resilient than residential sales in July, despite a fall in the overall value raised, according to Essential Information Group.
A total of 4,424 lots were offered during the month, down 2.4% from July 2025, while the number sold fell by 8.8% to 2,864.
The overall success rate declined from 69.3% to 64.7%, and the amount raised dropped by 18.6% to £540 million.
Residential auctions accounted for 3,903 lots offered and 2,514 sales. These figures were down by 2.8% and 10.1% respectively, while the residential success rate fell from 69.6% to 64.4%.
BROADER GROWTH
By contrast, the number of commercial lots offered increased by 1.2% to 521, while sales rose by 1.7% to 350. The commercial success rate edged up from 66.8% to 67.2%, although the amount raised fell by 19.9% to £97.6 million.
The longer-term figures showed broader growth. Across the 12 months to July, the number of commercial lots offered increased by 12.5% to 5,138 and sales rose by 11.5% to 3,519. Commercial receipts increased by 3.4% to £1.1 billion.
“The broader picture remains encouraging.”
Stuart Collar-Brown, NAVA Propertymark president, says: “While the monthly figures show some softening in auction activity compared with the same period last year, the broader picture remains encouraging.
“The market continues to see a healthy volume of properties coming forward, with auction providing sellers with a route to market that offers greater transparency, speed and certainty at a time when wider economic and political uncertainty remains.
“Importantly, the figures suggest that buyers are becoming more selective rather than that demand for auction is disappearing. The proportion of lots sold has softened, but activity over the longer term remains strong, demonstrating that there is still considerable appetite for auction among both sellers and buyers.”
Collar-Brown says the performance of commercial property could indicate that investors are reconsidering the balance between residential and commercial assets.
“Changing investor priorities”
He says: “The strength of the commercial market is particularly interesting. We are seeing strong commercial activity across a number of regions, which may point to changing investor priorities.
“With significant changes taking place in the private rented sector, including the Renters’ Rights Act in England and changes to Scotland’s private rented sector, some investors may be reassessing the balance of risk and return associated with residential property.
“Commercial property, particularly where longer leases and more predictable income can be secured, may therefore be becoming more attractive to some investors.
“Commercial property is showing considerable resilience.”
“That said, it would be premature to attribute the shift entirely to changes in legislation. The commercial market is influenced by a range of factors, including yields, financing conditions, occupier demand and local market dynamics.
“What is clear is that commercial property is showing considerable resilience and, in some areas, particularly strong growth.”
Regional performance varied considerably over the three months to July. Commercial lots sold increased by 121.8% in the South-West, 50.8% in Wales and 47.5% in the South-East Home Counties.
London recorded the highest overall success rate among the regions at 75.3%, with 778 of the 1,033 lots offered being sold. The capital raised £342.5 million, an increase of 18.1% from the corresponding period.
