Property Auction Insights

Auction Averages

The scatter plot shows how auction activity has behaved over the last five years by comparing the number of completed lots in each month with the average sale price achieved in that same month. Each point on the chart represents one month of auction data, giving a clear view of how volume and pricing interact over time.

What the visual highlights is that there is no consistent link between how busy a month is and the prices achieved. Higher volumes do not reliably push average prices down, and quieter months do not automatically lead to stronger results. Instead, the spread of data points reflects the changing mix of properties offered each month. Some catalogues contain lower value stock, while others include a higher proportion of mid to upper value lots, and this variation has a greater influence on the average price than the number of sales alone.

By showing monthly results side by side, the data makes it clear that auction pricing is shaped primarily by stock composition rather than fluctuations in volume. This helps reinforce the point that opportunities exist in every type of month, whether the catalogue is large or small.

With this baseline in place, the next step is to consider how these capital patterns interact with the income side of property investment and how passive returns compare with other major asset classes.

Passive Investments

For investors purchasing property with the aim of generating rental income, the relationship between entry price, yield, and long-term stability is central. The passive return data shows that rental-led strategies deliver steady performance year after year, even while financial markets rise and fall more sharply. This consistency is supported by predictable rental income and the slower pace at which residential values typically move.

Rental Yields

Purchasing through auction strengthens passive performance by lowering the initial cost of entry, and the accompanying comparison of average auction sale prices against average open market values highlights just how significant that difference can be. Over the past several years, auction prices have consistently sat below OMV, often by a meaningful margin. This pricing gap is not a one-off occurrence or a short-term fluctuation but a structural feature of the auction environment, where a portion of stock is offered at more accessible levels due to condition, seller circumstances, or the speed of the sales process.

When the same rental income is applied to these lower acquisition costs, yields remain consistently higher than when buying at full open market value. The effect is straightforward but powerful. A lower purchase price converts directly into a stronger return on every pound invested, and the benefit is immediate rather than theoretical. As rental income continues month after month, the improved yield compounds, enhancing long-term cash flow and strengthening the overall return profile of the asset.

For investors building rental portfolios, this yield premium is a central reason why auctions remain such an attractive route. The ability to acquire property below typical market levels not only boosts income performance but also creates a buffer against market fluctuations and provides more flexibility when planning long-term strategy. The margin between auction and OMV pricing therefore plays a fundamental role in shaping the effectiveness and resilience of rental-led investment.

Active Investments

Active property investment is based on the principle that value can be added through timing, improvement, or repositioning rather than through holding alone. Auctions support this because the pricing at the lower end of the catalogue often provides a starting point that is not available in the open market. By purchasing discounted stock and moving it closer to typical regional values, whether through light preparation, resale into a different auction cycle, or more substantial refurbishment, investors aim to unlock the difference between their entry price and the achievable exit value.

The strategies modelled here show how these approaches behave when applied consistently. Short auction to auction resales, auction purchases resold toward market value, and renovation-based uplifts each illustrate how pricing and timeframes influence potential returns. These examples are not forecasts of individual outcomes. They are demonstrations of how the underlying mechanics of active investing operate when starting from auction level pricing.