The Supply Squeeze and How Auctions are Unlocking Hidden Property Deals
Property supply has tightened across the UK, with high mortgage rates, economic uncertainty and tighter regulations combining to keep many homeowners from selling. More and more would-be movers are waiting for conditions to stabilise, while estate agents’ listings are thinner now than they were even a year ago. This means competition for good properties is fierce.
But beneath the surface, auctions are quietly opening opportunities that aren’t always visible on the open market. For those willing to look and to act decisively, auctions are offering a route into deals that might otherwise be missed.
Why the market is facing a supply squeeze
For much of 2024 and into early 2025, the UK housing market has operated under a cloud of cautious optimism. Inflation has dropped from its peaks, and interest rates have begun to edge lower, but affordability remains stretched. Many homeowners who might otherwise have downsized, upsized or relocated have opted to stay put.
Meanwhile, buy-to-let investors have been reining in activity. New tax rules, higher mortgage costs and rental reforms have prompted many landlords to pause or rethink their plans. The result is a squeeze on supply across all property types, from starter flats to family homes to investment stock.
Anything that reaches the open market tends to attract strong interest in this environment, driving up prices and making it harder for buyers to negotiate. But auctions, with their faster timescales and slightly different pool of sellers, are proving to be one place where hidden stock is still coming to light.
How auctions are responding to the shortage
Auction houses see the shift in the market and are adjusting how they operate. Many are sourcing properties more aggressively, reaching out to probate solicitors, asset managers, and receiverships to uncover stock that hasn’t been through the conventional sales channels. Some auction houses are working closely with high street estate agents, offering auction as an alternative route for sellers who need a quicker or more certain result.
This means the types of properties appearing at auction is broader than ever. It is not just run-down terraces and former pubs or anymore. Well-maintained family homes, modern apartments, and even new-build properties with minor issues are increasingly making their way into auction catalogues.
At the same time, auctions are adapting to buyer needs. Remote bidding has been normalised since the pandemic, with many auctions still running online or livestream formats. Legal packs are becoming more detailed and accessible, allowing buyers to carry out faster due diligence.
What kinds of hidden deals are emerging?
One of the advantages of auctions in a supply-constrained market is the sheer variety of stock available. Properties that might not fit neatly into estate agents’ marketing brochures often find a home under the hammer. These include properties with minor legal issues that can be cleared up with the right advice, and homes requiring cosmetic refurbishment rather than full structural repair.
There are tenanted properties where the buyer is happy to inherit sitting tenants, and properties being sold by executors who prefer a fast, transparent sale. There are also plenty of plots of land, garages and commercial units with residential potential.
Because many auction sellers are motivated to secure a quick sale, buyers often find opportunities to purchase at a discount compared to the private treaty market. This is especially true for buyers who are ready to move quickly and who have done their homework on the property’s potential.
Why auctions reward preparedness
The auction process demands a different mindset from the traditional property search. It’s faster, less flexible, and less forgiving. But for buyers prepared to put in the effort upfront, it can offer a real advantage.
Before bidding, serious auction buyers review the legal pack, carry out surveys if needed, arrange financing or have cash ready, and set a clear maximum price. In a tight supply market, this level of decisiveness can mean the difference between securing a good property at a fair price and missing out altogether.
The outlook for auctions in 2025
As interest rates continue to stabilise and some confidence returns to the broader housing market, traditional transactions will resume. However auctions are expected to remain an important outlet for hidden stock, particularly in a world where flexibility and speed are valued.
Auction House London provides in-depth guides for buying and selling property at auction, and if you have any questions about the properties and land currently available for auction, then contact our team of auction professionals. If you’re already looking to buy residential or commercial property at auction, browse through the lots listed in our forthcoming auction. Or, if you have property you want to sell, why not see how much it could be worth in an auction with a free valuation by Auction House London.