Property auction homes are currently selling at an average discount of almost 45% compared to wider market values, highlighting the growing importance of specialist finance in helping investors secure time-sensitive opportunities.
Research from Octane Capital found that the average guide price of an auction property in England currently stands at £159,996 – some 44.8% below the average UK house price of £290,001.
The analysis suggests investors purchasing via auction are securing average discounts of around £130,000, although many of the properties require extensive refurbishment or are unsuitable for mainstream mortgage lending.
Octane says the findings highlight why bridging and refurbishment finance continue to play an increasingly important role within the auction market, where tight completion deadlines and property complexity often prevent buyers using traditional funding routes.
FLEXIBLE STRUCTURES
Auction purchases typically require completion within a matter of weeks, increasing reliance on specialist lenders capable of delivering rapid underwriting and flexible funding structures.
The lender says Yorkshire and the Humber currently offers the largest auction discount, with properties selling at 52.4% below average regional values.
The West Midlands followed at 50.2%, while auction homes in the East of England were priced 49.4% below wider market averages.
Octane says the condition of much of the stock entering the auction market remains a major factor behind the pricing gap, with many homes requiring heavy refurbishment, structural works or redevelopment before becoming mortgageable.
The lender also points to continued growth across the bridging sector, noting that total bridging completions exceeded £10bn during 2025 as borrowers increasingly turned to specialist funding for complex and time-sensitive transactions.
SPEED AND CERTAINTY
Jonathan Samuels (main picture, inset), CEO at Octane Capital, says: “Property auctions continue to present some of the best opportunities for investors to acquire assets below market value, but these opportunities don’t come without their challenges.
“Many of these homes require significant work and aren’t suitable for a traditional mortgage, which means buyers need to be prepared to move quickly and with certainty.
“Specialist finance plays a crucial role in enabling this, providing both the speed to secure the property and the flexibility to fund the works required to unlock its value.
“As competition for these types of assets continues to grow, the ability to execute quickly is becoming just as important as the opportunity itself.”
