“While EIG’s June figures may be a little disheartening on the surface, we’re still seeing that the number of lots going onto the property auction market has grown exponentially over the last few years”
– Scott Hendry – Together
The latest property auction data from EIG suggests a slowdown in activity during June. However, figures from lender Together indicate continued momentum in auction finance throughout the first half of 2025.
Together’s internal data shows a 7% year-on-year increase in auction finance loans between January and June 2025 compared to the same period in 2024. The total value of finance granted also rose, up by 17% over the same timeframe. Compared to 2023, auction finance lending volumes in H1 2025 have increased by 52%.
While the broader auction market may be cooling, Together’s figures suggest demand for short-term property funding remains strong.
According to EIG’s June Auction Insight, several key indicators declined year-on-year:
Total lots sold dropped by 6.3%.
Commercial lot sales declined by 21.8%.
The total raised from auction finance fell by 9%.
Despite these trends, demand for auction finance has grown. The product remains popular among both home-buyers and property investors seeking to purchase homes that high street lenders may deem unmortgageable—typically properties lacking functional kitchens or bathrooms.
Auction finance allows buyers to secure short-term lending, which can then be repaid by refinancing into a residential mortgage, a buy-to-let arrangement, or by selling the property after completing renovations.
“While EIG’s June figures may be a little disheartening on the surface, we’re still seeing that the number of lots going onto the property auction market has grown exponentially over the last few years,” said Scott Hendry, director of auction finance at Together. “Auctions offer excellent investment opportunities, and the buyer’s market means that now may be the best time to make a move on the low prices available.
“Property auctions offer the advantages of being a quick buying process, and presenting attractive investment opportunities for buyers looking for residential or commercial real estate. Properties which might not traditionally be available on the open market (often unique or distressed) can offer refurbishment or development opportunities for the prospective property investor or homeowner.
“They are also enabling a shift in strategy, with investors having the opportunity to pursue mixed-use, split between commercial and residential, or non-standard properties that traditional lenders may shy away from. This includes former retail premises, pubs, and community buildings with development potential, especially areas that are currently being targeted for redevelopment by the Government.”
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