Thinking back to the start of 2025, it’s fair to say the year was anything but straightforward. Conversations with estate agents and investment brokers painted a bleak picture - the cost of borrowing remained a thorn in everyone’s side and an unstable political backdrop only added layers of uncertainty.
In truth, this hasn’t been a one-off; you could argue we’ve been living in a state of flux for the better part of five years. From Trump’s tariffs to shifting domestic policies, the market has been shaped as much by sentiment as by fundamentals. And when sentiment turns chaotic, people do what they always do: nothing. They wait it out.
The auction market, however, has once again proven to be the exception. This year, we’ve been successfully selling for those who need to sell, regardless of what the headlines say, and there’s been no shortage of such sellers. Our catalogues have carried the same profile of vendors, but volumes have shifted dramatically. Housing associations, for instance, have featured heavily, driven by the need to raise capital as higher rates bite and balance sheets require rebalancing. In the meantime, property funds and private landlords - spooked by the Labour government, the rising standards for landlords, and the cost of meeting them - have shown more determination to sell than last year.
Meanwhile, rents have surged, and tax and policy pressures have only accelerated the trend. For many, the decision to hold has turned into a decision to exit. Against this backdrop, the auction room has remained a place of liquidity and certainty - a rare constant in a market otherwise defined by hesitation.
Why was 2025 such a successful year for Allsop Residential Auctions?
If 2024 was about cautious optimism, 2025 was about decisive action. While much of the property market continued to wrestle with uncertainty, Allsop’s Residential Auction team delivered another outstanding year, not because conditions improved, but because sellers needed solutions, and we were able to provide them.
We raised more than £550M from 11 residential auctions across 2025 and raised £71M in our largest ever December residential auction with 187 lots sold and an 85% success rate - marking our biggest residential sale of the year.
Success in 2025 wasn’t down to one single factor, it was the result of a perfect storm of market conditions and seller motivations. Across the wider property market, transactions were stalling. Deals were taking longer than ever to complete, and for many owners, that delay simply wasn’t an option. They needed certainty, speed and liquidity, and that’s exactly what we delivered.
In challenging markets, the value of selling quickly becomes crystal clear. For sellers under pressure, whether due to financial constraints or strategic decisions, our auctions offer a straightforward route to capital without the longer timelines of private treaty sales. That urgency has been a defining theme this year and we expect it to continue into 2026.
Put simply, when the market turbulence and uncertainty, auctions thrive. And in 2025, Allsop’s reputation as the leading residential auctioneer meant we were the first port of call for those who needed to act.
How have the political events impacted the auction market?
Looking back over the past 12 months, three factors stand out as the biggest influencers: interest rates, Trump’s tariff talk and the Autumn Budget. While none of these should have directly derailed UK property activity, sentiment matters, and sentiment was shaken. When Trump started playing games in April, it spooked investors globally and we saw some buyers here pause and wait. The same pattern repeated in the three months leading up to the Budget, with uncertainty and major leaks creating a climate of hesitation.
During these periods, buyer pools across sectors were noticeably smaller. Deals slowed, confidence dipped and many chose to sit tight until the storm passed. The good news? Those headwinds are now behind us. With the Budget delivered and interest rates trending down, the domestic backdrop feels far more stable.
It’s worth remembering that the UK residential market isn’t overly complex; it’s driven by supply and demand. And right now, demand is growing, prices are relatively stable and conditions are improving. All signs point to a more positive environment for investors as we move into 2026.
What is buyer sentiment?
While interest rates eased gradually through the year, the anticipated surge in buyer confidence never fully materialised. For much of the first nine months, external pressures - from political uncertainty to global tariff talk - kept buyer pools thin across most sectors. Deals slowed and many investors chose to sit on their hands, waiting for clarity.
The last six months compounded that caution. Speculation around the Autumn Budget drained confidence further, encouraging buyers to pause rather than commit. Yet, when the Budget landed, the consensus was that it wasn’t as severe as feared - a sentiment that could pave the way for renewed activity in early 2026.
In fact, many investors will likely reflect on 2025 as a missed opportunity, a year when uncertainty held them back from buying at attractive prices. Looking ahead, if interest rates continue to fall as expected, we anticipate a stronger start to the new year. With confidence returning, we expect those side-lined buyers to re-enter the market with purpose.
What should investors be looking out for?
Much of 2026 will hinge on one key factor: the cost of debt. Interest rates remain the single biggest driver of confidence and if they continue to ease, the investment climate will become much more favourable. With the Autumn Budget now behind us, there’s an opportunity for investors to be more decisive and aggressive in their purchasing strategies.
On the seller side, the profile is unlikely to change dramatically. We expect to see plenty of private landlords who are reluctant to inject more capital into their portfolios, creating opportunities for buyers to acquire stock at realistic prices. For those prepared to act, the coming year could offer excellent value, particularly if borrowing becomes cheaper and confidence returns.
In short, watch the cost of finance, stay alert to motivated sellers and be ready to move when conditions align. 2026 could reward those who act with purpose.
What are your expecting for 2026?
Looking ahead to 2026, we’re anticipating a broader, more active market, but progress will be gradual. One of the biggest challenges over the past three to five years has been in the development sector, where the cost of finance and construction has made many sites unviable. If interest rates continue to fall as expected, this could be the turning point that breathes life back into that space.
Greater stability should enable developers to start buying land and sites again. Much depends on borrowing and build costs, and these will dictate how quickly confidence returns. Another critical piece of the puzzle is planning, if the government can streamline the process and make it more affordable, it would accelerate recovery and unlock opportunities for developers.
2026 feels like it will be a year marked by measured confidence. It can’t be as challenging as 2025 has been and with the right conditions, we could see the foundations of a stronger market being laid.