Astute auction aficionados are currently gravitating towards these four property types in the marketplace
Spotting Trends in UK Property Auctions: What's Hot and Why
AUCTIONS, once a niche avenue for seasoned home buyers and investors, have reemerged as a thriving market, witnessing a 20% surge in activity compared to the previous year. This unexpected boost certainly suggests that bargain-hunters are intent on securing deals, even despite challenges like stricter mortgage rules and a fluctuating economy[1][3].
So, what's drawing people to the auction room? Here are four popular categories of properties that have caught the fancy of prospective buyers:
1. Short-Lease Flats: Bets on Government Reforms
Some auction goers are eagerly wagering on the anticipated leasehold reforms by the Government, which promises to make lease extension more affordable and less cumbersome. Presently, extending a lease could set one back around £10,000, including legal fees[4]. However, the real hurdle comes when a lease has fewer than 80 years left upon renewal, as leaseholders then risk having to shell out some 'marriage value' to the freeholder[4].
The marriage value is the upswing in property value due to the lease extension, and leaseholders usually have to cover 50% of this cost[4]. Sadly, there's no cap on this expense, and it could turn out extremely expensive in certain instances[4]. As a result, flats with leases below 80 years can depreciate quickly. Fortunately, the Leasehold and Freehold Reform Act 2024 aims to abolish this marriage value[4].
Though the law's implementation is a ways off, those who seize the opportunity to buy cheap leasehold flats now could potentially reap immense profits upon its implementation[4]. Auction House London's co-founder, Andrew Binstock, shares his observation: "Short-leasehold flats are garnering significant demand—we've already offered over 150 this year alone. Buyers are progressively confident about the upcoming leasehold reform, as these properties have, on average, sold for 25 percent above their base price[4]."
Case in point, a one-bedroom flat on offer at Auction House London's next sale (2nd and 3rd July) boasts an eight-year lease[4]. Located on Beaufort Street in London's Chelsea, its guide price stands at £120,000[4]. For a potential home buyer or investor, this flat could serve as either a primary residence, a pied-à-terre, or an affordable...[Further information available on requirements,vetting_processes,expenses,risks,_and_potential_rewards_of_purchasing_leashold_properties]
RELATED ARTICLES
Previous | 1 | 2 | Next
2. Bargain Homes in Desirable Locations
One reason buyers are making a beeline for auctions is to lay their hands on affordable properties in desirable locales like coastal towns or the Cotswolds[6]. Unfortunately, buying a home replete with modern amenities in these areas might stretch their budgets[6]. However, those ready to embark on a fixer-upper journey can still negotiate their way into these dreamy locales through auctions[6].
For instance, in April 2025, Auction House London secured a sale for a period property in Cheddar, Somerset for £170,000, which was £20,000 more than its £150,000 guide price[6]. This building, nestled in the Mendip Hills close to Cheddar Gorge, is presently used as a medical clinic and offices, but it boasts planning permission to be converted into two two-bedroom flats[6]. With an average flat price in Cheddar at £147,800, there's ample room for profit[6]. Permissions could also be sought for a sizable, single-family home[6].
Similarly, Auction House London managed to sell a two-bedroom, semi-detached house in the village of Cottenham (near Cambridge) for £152,000 in April 2025[6]. The average semi-detached house price in Cottenham in the last year was £381,136[6].
What's the Average Price at Auction?
According to Auction House London, the average auction property sold for £262,789 in April 2025[6]. Compared to the average house price of £296,648[7], this represents a notable savings of £34,000 or 11.5%[6]. However, Andrew Binstock of Auction House London shares that the actual savings are often around 20%[6]. Buying through auction can, therefore, prove to be an effective strategy for optimizing one's financial resources—but like any investment, it comes with its fair share of risks[6].
3. Shops with Living Quarters
The hybrid property market, made up of commercial spaces with living quarters, continues to attract buyers due to its versatility and potential to appreciate in value over time[6].
Andrew Binstock of Auction House London observes, "The demand for adaptable investments is evident, particularly in the mixed-use sector. Buyers gravitate towards versatility and the potential to add value in the long run[6]."
For example, a building on the high street in Kington, Herefordshire is being sold at the July auction with a guide price of £120,000[6]. It comprises a shop on the ground and lower floors, as well as a four-bedroom flat on the split levels above[6] and a rear garden[6].
4. Plots of Land for Development
Plots of land suitable for construction are popular as well, thanks to Labour's push to encourage greater home building[8]. Andrew Binstock shares that 80% of land offered at Auction House London is eventually sold[8]. He adds, "The proactive stance of the Labour government regarding planning is instilling confidence in sites with construction potential[8]."
Exciting land offerings in the upcoming July auction include a 3,897 sq ft plot in Glastonbury, Somerset, where permission has been granted to build five homes[8][9]. Its guide price: £65,000. Furthermore, an 1,851 sq ft plot in St Albans, Hertfordshire, is also up for grabs, with a guide price ranging from £5,000 to £15,000[8].
Enrichment Data omitted due to length restrictions
Investors are showing increasing interest in short-lease flats, betting on the anticipated leasehold reforms by the Government that could make lease extension more affordable. This strategy could potentially yield significant profits upon the implementation of the Leasehold and Freehold Reform Act 2024.
Moreover, buyers are flocking to auctions to secure bargain homes in desirable locations, such as coastal towns or the Cotswolds, even if they require renovation. These properties, if successfully transformed, could appreciate in value and offer substantial returns on investment.
