Jonathan Samuels, CEO of specialist lender, Octane Capital, believes that whilst property auctions continue to offer some of the most attractive discounts in the market, the ability to move quickly using specialist finance is becoming increasingly crucial in order to secure these opportunities.
Octane Capital analysed current auction property listings across England, comparing average guide prices with regional house price benchmarks to understand the level of discount available to investors purchasing via auction.
The research shows that the average guide price of an auction property in England currently sits at £159,996, some -44.8% below the average UK house price of £290,001, equating to a discunt of £130,005.
This significant discount is largely driven by the type of stock that typically enters the auction market. Many properties are unmodernised, structurally compromised, or require extensive refurbishment, making them unsuitable for purchase via a traditional mortgage lender.
Across the regions, Yorkshire and the Humber offers the largest discount, with auction homes priced -52.4% below the regional average. The West Midlands also sees a significant reduction of -50.2%, followed by the East of England at -49.4%.
At the same time, auction properties are often sold on tight completion timelines, with buyers typically required to complete within a matter of weeks. This combination of property condition and speed of transaction means that access to funding is critical.
As a result, specialist bridging and refurbishment finance is playing an increasingly important role. Unlike mainstream lending, which can be slower and more restrictive, specialist finance allows investors to secure auction properties quickly and fund the works required to bring them back to market.
This growing reliance on specialist funding is reflected in the wider market, with total bridging completions surpassing £10bn in 2025, as borrowers increasingly turn to bridging finance to navigate time-sensitive and complex transactions.
In an increasingly competitive landscape, where value-add opportunities are limited and timelines are tight, the ability to act decisively can prove just as important as the opportunity itself.
Jonathan Samuels, CEO of Octane Capital, said:“Property auctions continue to present some of the best opportunities for investors to acquire assets below market value, but these opportunities don’t come without their challenges.
Many of these homes require significant work and aren’t suitable for a traditional mortgage, which means buyers need to be prepared to move quickly and with certainty.
Specialist finance plays a crucial role in enabling this, providing both the speed to secure the property and the flexibility to fund the works required to unlock its value.
As competition for these types of assets continues to grow, the ability to execute quickly is becoming just as important as the opportunity itself.”
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