2026 Predictions for the Auctions Sector
Daniel Gale, Head of Auctions, First for Auctions, part of LRG
“As we enter 2026, market conditions are expected to mirror those seen last year. Buyer confidence remains cautious, borrowing costs are still high, and lenders continue to tighten criteria. This ongoing pressure on private treaty sales is driving more sellers towards auction as a more dependable alternative. We have just delivered our largest auction to date, with instructions up nearly 25% year on year, demonstrating how strongly the method is resonating with both estate agents and homeowners.
“One of the most notable trends last year was seller fatigue. Many were exhausted by fall-throughs and lengthy chains, and when buyer commitment is uncertain, sellers increasingly seek a route that offers greater certainty. Auctions provide that reassurance. Even in November, just 24 hours after the Autumn Budget, we still achieved a 70% sale rate and recorded our second-highest capital value of the year.
“Pricing will remain the defining factor in 2026. Sellers who take a realistic, well-advised approach are achieving excellent results. In several cases, properties that failed to attract interest at a higher guide price have gone on to sell for more than that original figure once correctly priced, highlighting the strength of competition when the strategy is right.
“Investor behaviour is also evolving. While some landlords continue to exit the market due to rising costs and regulatory pressures, others are targeting opportunities in lower-value stock, particularly flats with reasonable service charges. We are also seeing more buyers willing to refurbish and resell, provided the figures stack up, while retaining the option to occupy the property if margins are tighter.
“Looking ahead, the most significant trend for 2026 will be the continued growth of online, unconditional auctions. Sellers want speed and certainty, agents want a professional solution that protects their brand, and buyers want transparency and structure in an unpredictable market. Auctions deliver on all fronts, which is why they are fast becoming a mainstream sales method rather than a niche alternative.”
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