Owner‑occupiers lead the charge

Auctions combine complete transparency with a guaranteed timeline. This has proved invaluable for sellers who need to move quickly and confidently.

The strongest demand in the auction room in the second half of 2025 was from those buying for their own use, which saw a net balance of +17%. While this suggests that buyers are more likely to consider the auction route for their own personal projects, full-time developers (+11%) and investors (+8%) also reported growing enthusiasm.

However, those adopting auctions as a part-time or occasional activity reported a net fall in appetite – suggesting that committed, strategic buyers are currently driving momentum.

Cash remains king with auction buyers

The return to a more stable financial environment following the Autumn Budget fostered a more positive outlook among potential buyers and sellers, though pricing remained key across all asset classes.

Across the board, auction buyers generally increased their budgets. Investors in commercial assets were the most bullish, reporting a net budget rise of +23%, while residential investors and developers followed at +11%.

This increased spending power helped fuel a strong year for sales. Savills Auctions sold £960 million worth of assets in 2025 – an 18% rise from £810 million in 2024. The attraction is clear: double-digit yields across retail (12.6%), residential (11.4%) and mixed-use (11.1%) stock positioned property as a stable hedge against inflation and wider market volatility.

And although interest rate cuts brought some relief, borrowing hasn’t surged. Only 37% of buyers used debt to finance their purchase (up slightly from 32% the previous year). The majority are still relying on cash – a trend that continues to give auction buyers a competitive edge.

Investors become more selective

While demand remains strong, investors are becoming increasingly selective, particularly in the residential sector. The upcoming Renters’ Rights Act, due to come into effect in May, combined with a generally lower appetite for risk post‑Autumn Budget, is prompting many to rethink the types of assets they pursue.

More than a third of respondents (35%) said the Budget has made them more selective about the properties they bid on. A smaller portion (6%) expect to shift their focus entirely to new property types or locations. At the same time, most investors say their risk appetite has dipped since November, with a net balance of -6%.

The impact of the Renters’ Rights Act is already visible. Almost half of those surveyed (44%) anticipate reducing the size of their residential investment portfolio – or diverting future investment into alternative asset classes altogether.

Yet it’s not all contraction. Encouragingly, investors are showing more flexibility when it comes to location. 28% now say they would consider the same property type across multiple regions, compared with 21% in our previous survey. In other words: while investors may be more cautious, they’re also more open to looking further afield for the right opportunity.

Looking ahead

If there’s one overarching message from the survey, it’s that the auction market continues to offer clarity, pace and opportunity, even in a shifting economic and legislative landscape. End users are driving momentum. Investors are refining their focus. Cash buyers remain influential. And stabilising financial conditions are helping build a more confident outlook for 2026. The auction room, it seems, is still one of the most revealing places to understand what buyers really value, and where the next wave of opportunity might arise.

Further information

Contact Robin Howeson

Read more in our annual auctions review and outlook 2025/2026