Selling Your House by Auction in Winter/Spring 2026

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As we start 2026, UK homeowners thinking about selling their property – whether a house or flat – face a muted but stabilising market. After a year where political and fiscal uncertainty weighed on buyer confidence, there are reasons for cautious optimism: mortgage rates are falling, affordability is slowly improving, and as the market shakes off its end-of-2025 lull, activity is expected to pick up into the spring. But this is far from a rapid rebound – instead, 2026 is shaping up to be a gradual return toward “normality” rather than a boom year. 

For many sellers, that raises a key question: is auction a good option right now? The short answer is yes – particularly for those who value speed, certainty, or have properties that might struggle to stand out in a quieter open market. But let’s unpack the data and trends before getting into that.

Updated by: Mark Grantham on 3rd January 2026

Seasonal Momentum: Spring Could Bring the Bounce

From late February into March and April, we typically see an uptick in housing market activity – often nicknamed the “spring bounce”. Buyers return from the winter break, schools finish for Easter, and families look to time moves before the summer. That annual seasonality is a reliable driver of transactions and can be particularly beneficial for sellers listing earlier rather than later in the year.

For traditional estate agency sales, this seasonal surge often translates into more enquiries, viewings, and offers. For auctions, spring schedules also tend to see higher bidder interest (both from investors and owner-occupiers) as professionals reallocate budgets and private buyers reassess plans after the quieter winter months. Timing a lot to coincide with this momentum can help capture that uplift in buyer attention.

What Happened in Late 2025 – And Why It Matters

The end of 2025 was characterised by unusual market caution as many potential buyers and sellers held off decisions awaiting the Autumn Budget. RICS and other industry commentators noted that this uncertainty – fuelled by speculation over tax changes – caused a notable slowdown in housing activity and contributed to weaker price growth toward year-end. 

When the Budget finally arrived in November 2025, it was relatively tame from a property perspective – meaning many of the feared drastic tax changes didn’t materialise. The main housing-related headline was the introduction of a mansion tax for high-value properties from 2028 onwards. While this doesn’t bite until later, the build-up of speculation had already dampened confidence in the market.

That pattern may not repeat itself so strongly in future budgets – once market participants adjust to the current fiscal framework, the “wait-and-see” effect is likely to diminish. In other words, 2026 may be less prone to the budget-induced uncertainty that weighed on late 2025 transactions.

Interest Rates: Falling, But Not Forgotten

One of the major positive developments heading into 2026 has been the Bank of England’s interest rate cuts. Late in 2025, the base rate was trimmed, bringing mortgage rates down from the higher levels seen earlier in the year. This has helped improve affordability and given buyers – especially first-time buyers – more confidence to engage with the market. 

Mortgage rates remain above the ultra-low levels seen in the early 2020s, but the downward trend helps with monthly payment calculations and expands the pool of potential buyers who can genuinely afford to transact. Lower rates also mean moving costs (when financed) are less punitive, which can stimulate activity overall.

For auctions, interest rates play a slightly different role. Many auction buyers are cash purchasers or have pre-approved financing, meaning they are less exposed to rate volatility. But falling rates still matter because they influence market sentiment – a more confident buyer pool helps auction lots achieve stronger bidding competition and closer alignment between guide price and sale price.

Household Affordability – The Silent Constraint

Despite some easing, housing affordability remains under pressure. The gap between earnings and average property prices, while narrowing slightly, still makes it hard for many households to buy without stretching finances or securing larger deposits. Moreover, even with interest rate cuts, many mortgage products carry significant costs compared to the pre-pandemic era. 

Affordability factors heavily into transactional behaviour. In conditions where moving costs and borrowing costs are high relative to incomes, buyers become more selective – and sellers may find that properties need to be realistically priced to attract offers. In such scenarios, auctions can offer clarity: they set a defined timeline and are less liable to the slow negotiation cycles that can happen in traditional sales when affordability concerns bite.

Landlords and the Rentals Rights Bill

May 2026 will see the Renters’ Rights Act (sometimes referred to as the Renters’ Rights Bill) come into force – bringing changes to the legal framework around tenancies, including removing assured shorthold tenancy terms and imposing greater obligations on landlords. 

For some landlords, this may inject caution into the buy-to-let market. Increased compliance responsibilities, and potentially lower yields if rent increases are dampened, could prompt some owners to reassess their portfolios – particularly smaller or older investors. A few could opt to sell investment properties rather than remain exposed to the new regime.

From a selling perspective, that could feed more stock into the market – especially flats and rental units – which historically perform well at auction due to their appeal to both investor and owner-occupier buyers who are comfortable with clear terms and swift completion timelines.

Leasehold Reform Delays

Leasehold reform remains a long-running story in UK property. Legislation designed to make leasehold ownership fairer and more transparent has passed its early stages, but full implementation has taken longer than many initially expected. 

This uncertainty around leasehold policy continues to influence market behaviour for flat owners, particularly those with short leases or expensive ground rents. Buyers in a traditional market may be hesitant to engage deeply with complex lease issues – whereas auction buyers frequently factor these into bids, making auction a useful route for leasehold flats that might otherwise linger on estate agent books.

Delays in reform mean clarity remains some way off, but they also mean that motivated sellers might benefit from alternative routes (like auction) that attract buyers who understand these complexities.

So, What Does This Mean for Sellers?

Putting the pieces together:

• House prices are expected to edge up modestly in 2026, with forecasts suggesting modest growth in the region of 2-4% over the year as confidence returns. 

• Seasonal momentum from late winter into spring offers a good window to bring properties to market; activity generally increases and buyer engagement improves.

• Affordability constraints remain a headwind, but with improving mortgage rates and wages, some barriers are easing.

• Policy shifts such as the Renters’ Rights Act may motivate some stock to come to market, especially rental investments.

• Leasehold reform’s slow progress continues to weigh on certain sectors, potentially making auctions more attractive for properties that might otherwise see limited interest in traditional channels.

Auction vs Estate Agent – Which Route in Early 2026?

Each selling route has its place, especially in the current environment:

Auction

Best suited for:

• Sellers wanting speed and certainty – auctions offer fixed completion dates.

• Properties that are non-standard or complex (short leases, tenancy issues, development potential).

• Situations where liquidity matters more than maximising every pound of price.

Advantages this quarter:

• Auction calendars align well with spring market revitalisation.

• Bidders often price in risks upfront, reducing fall-through rates common with estate agent sales.

• The competitive format can uncover true market value quickly.

Estate Agent

Best suited for:

• Properties in high-demand, mainstream segments where buyer choice is strong.

• Sellers with time flexibility and comfort with open negotiations.

Considerations now:

• Offers from buyers may take longer and are more sensitive to affordability headwinds.

• Pricing optimism can lead to extended time on market if expectations aren’t aligned.

Next steps…