Global unrest and domestic factors linger over property auctioneers despite positive start to 2026

As we progress further into the year, already 2026 is proving to be a story of two halves. In direct comparison to the rest of the property sector, the year started off with a strong degree of optimism and positive expectation. However, as world economies continue to adjust to current unrest, there is a change in sentiment that must be considered regarding how the remainder of the year may play out.

In addition, there are further aspects, such as cost of living pressures, the potential pathway inflation could take, and the effect this might have on base rates and ultimately mortgage deals on offer. As we stand, there are a myriad of unknowns, and many aspects remain fluid and unpredictable regarding the long-term picture. On top of this, we have some of the biggest changes in regulation for renters and landlords across England imminently about to take effect on 1 May 2026, in the form of the Renters’ Rights Act.

We currently stand at an important crossroad where many auctioneers reported a strong end to 2025 and expressed confidence for 2026, much has changed in a very short period.

For the first two months of 2026, momentum seemed to continue in the auction market. Data from the Essential Information Group (EiG) found that in January 2026, national auction activity increased dramatically across all crucial measures, with 2,162 lots offered in the month, up 47.3 per cent year-on-year. It was then reported for February 2026 that a total of 4,534 lots were offered nationally, up 6.7 per cent on February 2025, while sales rose by 6.2 per cent to 3,274 lots sold.

Now that March 2026 has finished, NAVA Propertymark’s Advisory Panel Board have provided their own insights into how the first quarter of 2026 has gone for them.

Market conditions are a driving force

Stuart Collar-Brown, NAVA Propertymark President, said:

“Valuation levels are at an all-time high, so lots of clients need auction advice. Due to market conditions, these are not converting into listings due to the disparity in outstanding lending vs what we deem is current market value.

“Pricing has therefore been far more conservative compared with 2025, which has led to a higher percentage sold in Q1; 2025 was 71% sold, and 2026 was 88%.

“Vacant residential stock (houses vs flats) is still the most desirable amongst buyers.

“Residential investments are struggling with portfolio landlords expecting far higher yields than before, which is affecting prices and that type of asset coming to market.

“Commercial investments are performing extremely well as more landlords are switching to a longer and more secure lease vs the uncertainty of assured shorthold tenancies and the incoming Renters’ Rights Act.”

Market insight:

There seems to be considerable value in investing in commercial property as opposed to residential property in response to new laws like the Renters’ Rights Act.

Quiet optimism amid challenging conditions

Matt Burrows, NAVA Propertymark Advisory Panel Board member, comments:

“Q1 2026 has started positively, with strong performance across our auctions. We have sold approximately 90% of all lots offered, and entry levels have remained steady, which is encouraging given the wider economic backdrop.

“Buyer demand is still evident, as demonstrated by a full room at our most recent auction and competitive bidding on well-priced stock. However, there remains clear price sensitivity. Lots that are not positioned competitively are seeing limited interest, which reinforces the importance of realistic pricing in the current market.

“Overall, the outlook is cautiously optimistic. That said, there are several external factors that will need to be monitored closely over the coming quarter, including geopolitical tensions, particularly in Iran, the direction of Bank of England base rates, and the trajectory of inflation. These will all play a role in shaping buyer confidence as we move into Q2.”

Market insight:

Realistic pricing is vital ahead of what remains a challenging outlook for the rest of the year due to external economic factors.

Mixed sentiment among buyers

Richard Worrall, Immediate Past President of NAVA Propertymark and NAVA Propertymark Advisory Panel Board member, said:

“Confidence amongst buyers seems mixed at the moment, with a split between those that see current market conditions as an opportunity versus those who are adopting a ‘wait and see’ attitude due to events in the Middle East and the impact on domestic conditions.

“As always, pricing is key to achieving a successful outcome, and those sellers who price accordingly are achieving very positive results.”

Market insight

The Middle Eastern crisis is deterring some buyers, while others are recognising this as an opportunity to purchase their next property via auction.

Property auctioning market remains resilient

David Leary, NAVA Propertymark Advisory Panel Board member, noted:

“As we approach the second quarter of the year, auctions have shown no let-up in their consistency and growth over the past 12 months, with an almost 6% increase in total raised and a 3% increase in lots offered. Having worked in property auctions over the past 30 years, history has shown auctions to have been resilient throughout all adversities, with more opportunities coming to market as properties are sold off quickly, with auctioning providing a far speedier mechanism of sale compared to that of the open market.

“With the Renters’ Rights Act that is coming in on 1 May, investors should be cautious and use trepidation, ensuring that they have not geared up too much for the next few years ahead. As said, auctions have remained highly resilient, and I see no difference in the growing auction sector of the property market going forward.”

Looking ahead

Auctions can provide people with a quick and speedy route to a successful sale, and many properties are priced at what are deemed sustainable levels during this period of economic uncertainty. However, the Middle Eastern crisis has added a whole new dynamic to the auctioning market, and it remains yet to be seen as to what impact it will have on what has mostly been a positive start to the year for many auctioneers.