Growing use of property auctions is increasing demand for fast, reliable funding, according to MSP Capital, as buyers and sellers turn to the sector for speed and certainty.
Daniel Curtis, legal director at MSP Capital, says the auction market is playing a bigger role in UK property transactions as more buyers and sellers look for a fixed timetable and committed purchasers.
He points to research from the Essential Information Group showing that the total value of property sold at auction in 2025 reached about £5.9 billion, up 7.1% on the previous year. Residential sales rose 9%, with 41,500 lots offered and just under 30,000 sold, which the report described as the highest annual total on record.
The year also ended with momentum, with lots offered in December 2025 up 14.2% year-on-year and lots sold rising by 15.1%.
MARKET MOMENTUM
Curtis says: “We are witnessing a huge rise in UK property auction activity.
“People are attracted to the auction route by the speed of potential transactions and the ease of bidding. Spikes in activity in recent years are down to factors such as stamp duty holidays and the opening up of more online auctions in the wake of the pandemic.
“In late 2025, there was renewed confidence among buyers and sellers after a period of uncertainty earlier in the year about what the Budget might mean for the housing market. Once there was clarity around that, activity levels rebounded.”
MSP Capital says auctions are proving particularly effective in chain-free cases and in situations where buyers are able to move quickly. Curtis also argues that they can help unlock stock that may have proved difficult to sell through other channels.
He says: “Auctions are an increasingly important way to buy and sell. They are especially effective for chain-free situations or where committed buyers can move quickly. They can help bring forward properties that, for whatever reason, may be difficult to sell otherwise. An example is where a proposed property sale is stuck due to a council tax rise.”
BRIDGING DEMAND
The lender says this has fed through into demand for specialist finance. MSP Capital launched its property auction finance loan in 2021 as part of its bridging range, targeting developers and investors buying residential property at auction through an unregulated bridging facility.
The product is available to company borrowers as well as private individuals, joint borrowers and partnerships. MSP Capital says it covers residential property including vacant homes, properties let on assured shorthold tenancies and those in need of refurbishment.
Curtis said the business had expanded into the space after repeated conversations with bridging clients and prospective borrowers who wanted an alternative to the traditional estate agency route.
He says: “We began offering property auction finance in 2021 after lots of conversations with our bridging loan clients as well as other borrowers and prospective borrowers. They told us they wanted an alternative to the traditional estate agency route and it’s a trend that has continued for us as a lender ever since. I think more and more houses will be going to auction in future.”
MSP Capital’s auction product is offered at up to 75% LTV and includes zero exit fee options, fixed legal fees and no valuation fees for properties worth under £1 million.
The lender says the key issue for auction buyers is being able to prove funding before bidding and then complete inside the usual 28-day deadline if successful.
Curtis adds: “It’s not just developers and investors who are keen on auctions. Many prospective buyers and sellers appreciate the certainty of a fixed timetable and price commitment. At the same time, it can be a stressful, ‘against the clock’-type experience so ready availability and certainty of funds is vital.
“We also have in-house lawyers as well as property experts who can help and advise.”
For brokers, lenders and auction buyers alike, the message is a familiar one: as auction volumes rise, execution risk around funding and legal work becomes more important.
