The EIG’s monthly update on Property Auction data showed a cooling in activity in June.
Despite this, Together’s own internal data shows that the industry remains robust as ever. This includes year-on-year increases in auction finance loans and grant volumes in the first half of 2025.
- Together’s internal data shows a 7% year-on-year increase in Auction Finance loans over H1 2025 against H1 2024
- This includes an 17% increase in the sum of all finance granted
- Compared to 2023, H1 2025 Auction Finance loans are up by 52%
EIG Auction Insight data showed a slight cooling in the market in June 2025, including:
- A 6.3% year-on-year fall in total lots sold
- A 21.8% year-on-year fall in commercial lots sold
- A 9% year-on-year fall in total raised from Auction finance
- Auction finance is a specialist short-term product which can allow home-buyers and investors to purchase ‘doer-up’ properties which high street lenders may consider unmortgageable, because they may not have a working bathroom or kitchen, for example.
Specialist lenders providing auction finance can bridge the gap with short-term loans that can be used to purchase properties or carry out renovation work. The short-term loan is then paid back by either refinancing to a longer term personal mortgage if they plan to live in the house, or a buy-to-let mortgage if they plan to rent out the property. They may also wish to sell – or ‘flip’ – the property at the end of the short-term loan, with a view to making a profit once it has increased in value following the completion of renovations.
Scott Hendry, director of auction finance at property lender Together, said: “While EIG’s June figures may be a little disheartening on the surface, we’re still seeing the number of lots going onto the property auction market has grown exponentially over the last few years. 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 home-owner.
“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.”
