Bridging finance key in driving uplift in auction activity
The latest analysis from specialist lender, Octane Capital, has revealed that auction sales across England have climbed by almost 9% over the past year, with auction buyers increasingly turning to bridging finance to meet strict completion deadlines and capitalise on below-market investment opportunities.
Octane Capital analysed the latest figures* on both the volume of auction sales seen over the last 12 months (Q2, 2024 – Q1, 2025), and the price achieved at auction, to see how the popularity for auction property purchases has changed when compared to the previous 12 month period.
The analysis shows that across England, an estimated 23,967 properties were sold at auction over the last 12 months, up from 22,007 in the previous 12 months, marking an 8.9% increase in transactions.
Auction purchases are proving particularly popular in the North East, where sales have surged by 14.8% year on year. London follows closely with a 14.7% uplift, while the East Midlands has recorded a 12.6% rise. The South West also saw notable growth of 10.6%.
The increasing demand has inevitably driven an uplift in the average price achieved for a property sold at auction.
Nationally, auction property prices have increased by 4.2% to £177,471. The North West leads the way with an 11.5% annual increase, followed by London at 11% and Yorkshire and the Humber at 10.1%.
For many buyers, bridging finance is the key to making these transactions happen and the latest figures show that auction purchases account for 13% of bridging loan market activity.. Auction purchases typically require completion within 28 days, a timeline that can prove challenging for high-street lenders, especially for unmortgageable properties or those requiring significant refurbishment.
Specialist lenders such as Octane Capital specialise in short-term finance, offering the speed and flexibility to ensure buyers can meet these tight deadlines without missing out.
Jonathan Samuels, CEO of Octane Capital, commented:
“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.
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.”
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