Reflecting on the first six months of the year, Managing Director Oliver Prior said 2026 had been "a tale of two halves", with a buoyant first quarter giving way to greater uncertainty as global events and domestic policy changes reshaped the market.
A strong start
Lower interest rates and improving confidence fuelled a highly positive opening to the year. Auction House offered 429 properties in January, up 109% on January 2025, while sales increased by 144%.
Momentum continued through February and March, with buyer confidence remaining resilient despite geopolitical tensions. By the end of Q1, lots offered had risen 30% year-on-year, and sales were up 21%.
"We couldn't have had a better start to 2026," said Oliver Prior. "There was a flood of sales as soon as we returned from Christmas, and with forecasters predicting further base rate cuts through the year, the market was hopeful of even better times to come."
A more challenging second quarter
Conditions became more difficult during Q2 as conflict in the Middle East increased inflation concerns, while the introduction of the Renters' Rights Act prompted many landlords to reassess their portfolios.
Auction House saw a 70% increase in tenanted listings during their weekly National Online auctions in April as some landlords chose to exit the sector, with certain properties selling at significant discounts to vacant possession values.
At the same time, transaction times across the wider market reached record levels, with RICS reporting an average completion period of 21.5 weeks in May 2026, marking the longest duration recorded since they began collecting data in 2017. Against this backdrop, auction's fixed 28-day completion period became increasingly attractive to buyers and sellers.
Despite tougher market conditions, Auction House continued to grow. Q2 sales increased 19% year-on-year, lots offered rose 35%, while total funds raised reached £253.7 million, up 34%. Average lot values also climbed 12.6% to £152,310, contributing to a first-half average of £144,490, up 6%.
"There was a changing of the tide in Q2 due to an increasing sense of market uncertainty," said Oliver. "But considering the challenges we've faced, the fact we've continued to grow is a real testament to the strength of the auction model."
Investor focus shifts north
Q2 highlighted a clear shift in investor demand towards northern England, driven by stronger rental yields and lower entry prices.
Regions including Yorkshire, Cumbria and Greater Manchester saw increased buyer activity as investors sought better returns, with online and livestream auctions making it easier than ever to buy property nationwide regardless of location. According to research by the Essential Information Group, London's rental yield now sits at 7.1%, while in Yorkshire and the Humber the profit potential is higher at 10.7%, rising to 14.4% in Scotland.
"The yield story is hard to ignore," commented Oliver. "Buyers are increasingly looking beyond the traditional hotspots to where the numbers work harder for them, and we're seeing that translate into genuine bidding activity across our northern territories."
That appetite was clear in one of the standout results of the quarter: a seven-bedroom property at 10 Priory Avenue, Sheffield, South Yorkshire, guided at £90,000 with a rental yield of 12.13%. It attracted 108 bids and sold for £225,000, more than double its guide price.
The Renters' Rights Act also created opportunities for experienced landlords, many of whom acquired properties released by smaller investors exiting the market.
Looking ahead
Although political uncertainty surrounding taxation and wider housing reform is likely to continue influencing confidence over the coming months, Auction House believes the fundamentals supporting the auction sector remain strong.
"The first half of the year has shown just how resilient the auction market is," said Oliver. "Investors with a longer-term strategy will continue to find opportunities, although they may increasingly be found outside the market's traditional hotspots.
"Once the political landscape settles, confidence should begin to return. Whatever the wider market brings, auctions will continue to offer the speed, certainty and transparency that buyers and sellers increasingly value."
